Redbox shuts down as its parent company declares Chapter 7 bankruptcy

July 10, 2024
3,563 Views

A judge overseeing Redbox owner Chicken Soup for the Soul Entertainment’s bankruptcy case granted a request Wednesday to convert it from Chapter 11 to Chapter 7 bankruptcy, according to Lowpass’ Janko Roettgers and The Wall Street Journal. The company’s lawyers said Chicken Soup for the Soul Entertainment will lay off its remaining 1,000 employees and liquidate the businesses, including streaming operations and the 24,000 or so disc kiosks that have rented out DVDs, Blu-rays, and videogames for years.

According to Roettgers, Judge Thomas Horan said, “There is no means to continue to pay employees, pay any bills, otherwise finance this case. It is hopelessly insolvent… Given the fact that there may also be at least the possibility of misappropriation of funds that were held in trust for employees, there is more than ample reason why this case should be converted.”

In addition to operating Redbox, Chicken Soup for the Soul Entertainment also manages brands like Crackle and Screen Media. (Note that Chicken Soup for the Soul Entertainment is a part of Chicken Soup for the Soul LLC; the broader company isn’t a part of this bankruptcy case, according to the WSJ.)

Chicken Soup for the Soul Entertainment didn’t immediately reply to a request for comment.

Source link

You may be interested

Trump has slight lead over Biden in battleground states, CBS News poll finds
Top Stories
shares3,275 views
Top Stories
shares3,275 views

Trump has slight lead over Biden in battleground states, CBS News poll finds

new admin - Jul 16, 2024

Trump has slight lead over Biden in battleground states, CBS News poll finds - CBS News Watch CBS News A…

Trump makes first public appearance since assassination attempt
Top Stories
shares2,642 views
Top Stories
shares2,642 views

Trump makes first public appearance since assassination attempt

new admin - Jul 16, 2024

First Trump appearance since rally shooting Trump makes first public appearance since assassination attempt 11:08 Washington — Former President Donald…

What the JD Vance pick means — for Trump, the GOP and the future
Business
shares3,981 views
Business
shares3,981 views

What the JD Vance pick means — for Trump, the GOP and the future

new admin - Jul 16, 2024

[ad_1] Let’s start by noting that it’s a rare vice presidential pick that actually moves the needle all that much in a presidential race.The most solid proof…