Hardware

Redbox parent company files for bankruptcy

Photo: Steve - stock.adobe.com

July 1, 2024

Redbox's parent company, Chicken Soup for the Soul Entertainment, has filed for bankruptcy protection, according to a CNN report. The company, which acquired Redbox in 2022, has nearly $1 billion in debt.

Employees were notified of the bankruptcy plans on Friday and haven't been paid since June 21, CNN report citing a Deadline report. Chicken Soup is seeking a loan to cover payroll during the reorganization process, but success is uncertain due to significant debts owed to retailers, studios, and streaming platforms.

The bankruptcy comes amid declining DVD rentals and a surge in streaming popularity.