The owner of Redbox has filed for Chapter 11 bankruptcy

Chicken Soup for the Soul Entertainment, which acquired movie rental service Redbox in 2022, filed for Chapter 11 bankruptcy protection, Deadline reports. The company recently disclosed net losses of $636.6 million for 2023 in an SEC filing, and Deadline Just days ago, it was reported that the company had suspended medical benefits and missed payroll payments, leaving employees without paychecks for a week already. In a message to employees on Saturday, Chicken Soup for the Soul Entertainment said it had applied for a debtor-in-possession loan to try to remedy the situation.

“Once court approval is obtained, we expect salaries to be funded at the start of the week and funding for next week’s salaries to be secured as well,” the message said. Deadline. “We also expect to have the funds to restore medical benefits through May 14, 2024 and beyond.” The $375 million deal to acquire Redbox came with a ton of debt and, according to The edgeChicken Soup for the Soul Entertainment owes money to a slew of retailers, studios and streaming platforms – including Walmart, Universal and Sony – as well as other creditors.

Its total debts are approximately $970 million. Chicken Soup for the Soul Entertainment also owns the Crackle streaming service and a few other film and TV brands, in addition to selling the long-running self-help books for which it is best known.

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