Nearly two decades ago, Redbox’s ubiquitous movie rental kiosks helped put video rental stores out of business. Now, Redbox’s parent company, Chicken Soup for the Soul Entertainment, is facing bankruptcy and serious questions about its future.
Via Deadline, Chicken Soup for the Soul Entertainment filed Chapter 11 bankruptcy last week after the company was reportedly late paying its employees while also slashing medical benefits. According to a message sent to employees, Chicken Soup applied for a debtor in possession loan that will allow it to make payroll and reinstate the lost medical benefits.
The bankruptcy filing has been made public, and it reveals that Chicken Soup owes $970 million to its unsecured creditors including Sony Pictures, Warner Bros. Pictures, Paramount, Universal Studios, Lionsgate, and Walmart. That’s not counting the company’s secured creditors, including the banks that lent money to Chicken Soup.
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