Chicken Soup for the Soul Entertainment, which owns the movie rental firm RedBox recognizable by its signature red kiosks, filed for Chapter 11 bankruptcy protection on Friday, June 28.
Chicken Soup for the Soul Reports $970 Million in Debt
According to a Variety report, the bankruptcy petition was filed in the United States Bankruptcy Court for the District of Delaware. In its filing, Chicken Soup for the Soul reported $970 million in debt and $414 million in assets. As of March 31, it had $4.9 million in cash and equivalents, with $4.6 million of the amount being restricted.
In the bankruptcy filing, a long list of creditors is included.
- Universal Studios Home Entertainment ($16.7 million)
- Universal City Studios Productions ($16.7 million)
- Sony Pictures Home Entertainment ($9.1 million)
- BBC Studios Americas ($9 million)
- Walgreens ($5 million)
- Lionsgate ($4.6 million)
- Walmart ($4.1 million)
- Vizio ($2.75 million)
- Warner Bros. Home Entertainment ($2 million)
- Paramount Pictures ($1.96 million)
- Paramount Home Entertainment ($1.2 million)
For the two weeks ending June 14, the firm also was unable to pay its workers. Therefore, it sought relief to do so, according to the New York Times (NYT). About 1,000 people, both full-time and part-time, work with Chicken Soup for the Soul.
Does Chapter 11 Filing Have Impact on RedBox?
In 2022, Chicken Soup for Soul Entertainment purchased RedBox, which was almost $300 million in the hole at the time.
RedBox has existed since 2002 and is known for its red DVD rental kiosks outside pharmacies and grocery stores. Approximately 27,000 kiosks are located throughout the US.
In 2008, William J. Rouhana Jr. was named CEO and ran the business with his wife, Amy Newmark, who was the book division's head of publishing and editing.
However, it is not clear whether the Chapter 11 petition will impact RedBox's operations. The business chose not to comment, according to the NYT.
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