Popular Name in Movies Files for Bankruptcy

Defaulting on loans, no paychecks for employees, and an order for company cars to be repossessed leads a big name in movies to file for bankruptcy protection.

At one time or another, you've probably walked past one of those big red box vending machines that can oftentimes be found at your local grocery store. You know the ones, right? The ones that offer a few hours of entertainment and can usually be found near the exit of the store or out front of convenience stores. It appears that the company that owns those boxes is in some financial trouble and that could mean it's the end of an era.

Redbox Movies Rentals

The Redbox movie rental company owned by Chicken Soup for the Soul Entertainment, has officially filed for bankruptcy protection after experiencing significant financial issues for the last few months according to the website Verge. Chicken Soup for the Soul Entertainment informed its employees last week that they were filing for bankruptcy and hoping to secure a "debtor-in-possession loan", which if approved would help the company reorganize and secure additional working capital to meet payroll.

Redbox Financial Troubles

As the company filed it was discovered that many of the company's employees have been waiting for paychecks since June 21st and that all employees lost their health insurance after it lapsed in May. Chicken Soup also owes money to numerous retailers including Walmart and Walgreens, as well as some big-name Hollywood studios like Universal, Sony, Lionsgate, and Warner Bros. The company also owes money to its landlords and the company it rents its car fleet from.

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Chicken Soup acquired Redbox in 2022 and since then has been sued over a dozen times over unpaid bills from various companies. According to court papers, Chicken Soup has $970 million in debt.