29.06.2024 19:28 Uhr, Quelle: Engadget

The owner of Redbox has filed for Chapter 11 bankruptcy

Chicken Soup for the Soul Entertainment, which acquired the movie rental service Redbox in 2022, has filed for Chapter 11 bankruptcy, Deadline reports. The company recently disclosed net losses of $636.6 million for 2023 in a SEC filing, and Deadline reported just a few days ago that it had suspended medical benefits and missed payroll, leaving employees without their 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 in an attempt to remedy the situation. “Upon court approval, we expect payroll to be funded early in the week and funding for this upcoming week’s payroll to also be secured,” the message said, per Deadline. “We also expect to have the funds to reinstate medical benefits back to May 14, 2024 and going forward.” The $375 million deal to acquire Redbox brought with it a ton of debt, and according to The Verge, Chicken Soup for the Soul Entertainment owes money

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