The parent company of Redbox, Chicken Soup for the Soul Entertainment Inc., has filed for Chapter 11 bankruptcy in the United States Bankruptcy Court of the District of Delaware. The company has between 1,000 and 5,000 creditors, assets of $414,075,844, and liabilities of $970,002,065 as of March 31, according to court documents.
Chicken Soup for the Soul Entertainment operates three flagship advertising-supported video-on-demand streaming services: Redbox, Crackle, and Chicken Soup for the Soul. They also run Redbox Free Live TV, a free ad-supported streaming television service with approximately 130 channels, as well as a transactional video-on-demand service and a network of approximately 27,000 kiosks across the United States for DVD rentals. The company also creates, acquires, and distributes films and TV series through its subsidiaries Screen Media and Chicken Soup for the Soul TV Group.
Chicken Soup for the Soul Entertainment Inc. is a subsidiary of Chicken Soup for the Soul, LLC, which publishes a book series and produces pet food under the Chicken Soup for the Soul brand name. The company acquired Redbox in 2022, but its stock value has dropped significantly from over $42 in 2021 to just 12 cents at the end of trading on Monday.
Chapter 11 bankruptcy provides businesses or large investors with protection from creditors while they continue operating and develop a repayment plan. Both creditors and owners must agree on a reorganization plan, which must be approved by a federal bankruptcy judge. Chicken Soup for the Soul Entertainment will continue operating during Chapter 11 bankruptcy.