Source: SOPA Images / Getty / Redbox
Redbox and Crackle’s parent company, Chicken Soup For The Soul Entertainment, filed for Chapter 11 bankruptcy after failing to pay workers and vendors for the past four weeks.
Spotted on Variety, the company filed a petition for bankruptcy on June 28 in the U.S. Bankruptcy Court for the District of Delaware.
In the filing, Chicken Soup For The Soul Entertainment listed total debts of $970 million and consolidated assets of $414 million as of March 31, 2024.
The entertainment company reported $4.9 million in cash and equivalents, including $4.6 million of restricted cash.
Per Variety:
Creditors listed on CSSE’s bankruptcy include Universal Studios Home Entertainment (which is owed $16.7 million) as well as Universal City Studios Productions ($16.7 million), Sony Pictures Home Entertainment ($9.1 million), BBC Studios Americas ($9 million), Walgreens ($5 million), Lionsgate ($4.6 million), Walmart ($4.1 million), Vizio ($2.75 million), Warner Bros. Home Entertainment ($2 million), and Paramount Pictures ($1.96 million) and Paramount Home Entertainment ($1.2 million).
As of the date of the bankruptcy filing, Chicken Soup for the Soul said it had about 836 full-time employees and 197 part-time employees (1,033 total). In a court filing, the company estimated that it owes employees approximately $3.52 million in unpaid wages and also is obligated to pay $2.24 million in health and welfare benefits and $594,204 toward workers’ 401(k) plans. Chicken Soup for the Soul Entertainment disclosed that it was “unable to make payroll for the two-week period ending on June 14, 2024.”
The website also reports that CEO Bill Rouhana Jr. (who owns 79% of the voting power represented in its outstanding common stock) said in a June 11, 2024, SEC filing that the company had dissolved its board of directors.
Rouhanan would step down on June 24, bankruptcy documents revealed.
Right now, Redbox is still operating; it will be interesting to see if the company shutters due to its parent company’s financial woes.