Redbox, one of the last bastions in the DVD-rental business, is shutting down.
Redbox’s parent company Chicken Soup for the Soul Entertainment filed for Chapter 11 bankruptcy protection in late June, having accumulated nearly $1 billion in debt and millions of dollars owed to more than 500 creditors ranging from entertainment bigshots, such as Sony Pictures and Warner Bros, to major retailers, including Walgreens and Walmart, the Associated Press reported.
Chicken Soup for the Soul Entertainment on Wednesday converted its Chapter 11 bankruptcy to a Chapter 7 liquidation proceeding, Variety reported. The initial bankruptcy filing shows the parent company had about $414 million in assets and $970 million in debts as shares for the public company fell more than 90% over the last year.
Redbox’s struggles have grown in recent years with the rise of streaming services, even as Redbox Live TV was launched to play ball with the likes of Netflix, Hulu, Peacock and the rest. Chicken Soup for the Soul Entertainment’s more-than 1,000 employees are now being laid off, with media reports suggesting they’re losing their jobs without severance or extended benefits due to the liquidation proceeding.
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Redbox was founded in 2002 and was acquired by Chicken Soup for the Soul Entertainment — along with some $325 million in debt — in 2022.
The service’s red kiosks became iconic fixtures in the liminal space just outside of brick-and-mortar businesses of all kinds, a chance often taken to stop and browse for a movie to watch or a game to play; of course, that’s unless the disc you ended up renting turned out to be a photocopy installed in the jewel case by some cunning kleptomaniac.
Several days after the bankruptcy filing, the rental service on July 1 left a farewell message on social media which simply reads, “love you guys.”
love you guys🫶
— Redbox (@redbox) July 1, 2024
The Associated Press contributed to this report.
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