Chicken Soup for the Soul Entertainment recently filed for bankruptcy protection in a Delaware court due to nearly $1 billion in debt. Despite having $414 million in assets as of March 2024, the company faced financial trouble and needed to work out a debt repayment plan.
The company behind the inspirational book series Chicken Soup for the Soul, which has sold over 500 million copies worldwide, found itself in financial trouble after acquiring Redbox in 2022. This deal left the company with a substantial debt of $360 million, which Chairman William J. Rouhana Jr. believed could have been managed if capitalized on the post-pandemic movie releases.
However, as the film industry recovers, Chicken Soup still requires additional cash to purchase and distribute new content, leading to a cash shortage. The company is currently unable to pay its suppliers for movies, leading to operational challenges and disappointing business results, especially within the Redbox segment.
To address its financial issues, Chicken Soup plans to sell off part of the business and restructure the remainder. The company still operates thousands of Redbox DVD rental kiosks across the U.S. and owns the video streaming service Crackle, which relies on advertising revenue for operation.
In addition to its core book series, Chicken Soup for the Soul has ventured into various other avenues such as movies, television, and pet food products. The company went public in 2017, marking a significant point in its history. Despite its current financial challenges, Chicken Soup for the Soul remains a prominent and well-known brand in the entertainment industry.