Chicken Soup for the Soul Entertainment, which acquired the movie rental service Redbox in 2022, has filed for Chapter 11 bankruptcy protection, 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 to a slew of retailers, studios, and streaming platforms — including Walmart, Universal and Sony — as well as other creditors.
Its total debts come to about $970 million. Chicken Soup for the Soul Entertainment also owns the streaming service Crackle and a few other film and TV brands, in addition to selling the long-running self-help books it’s best known for.
You Might Also Like
OpenAI hit by two big security issues this week
OpenAI seems to make headlines every day and this time it's for a double dose of security concerns. The first...
Possibly the most-delayed video game in history is finally available on the Game Boy Advance
Making a video game on any platform takes hard work, and even if a game is finished it’s still not...
Nintendo ends Wii U repairs
Earlier this year, Nintendo said it would shut down all Wii U servers, putting an end to multiplayer, co-op and...
Everything I want in a three-row family EV
Kia's infotainment software is zippy and responsive, befitting the EV9's modern displays. Wireless CarPlay and Android Auto support also makes...