Redbox to shut down after parent company files for bankruptcy: Reports
FILE - A Redbox movie rental kiosk stands inside a Walgreens store on July 1, 2024 in Los Angeles, California. ( Mario Tama/Getty Images)
Redbox is shutting down after its parent company, Chicken Soup for the Soul Entertainment, filed for bankruptcy last month, according to multiple reports.
More than a thousand employees will be laid off and thousands of those once-familiar red DVD rental kiosks and streaming services will be shut down, according to the Wall Street Journal.
In its bankruptcy filing, Chicken Soup for the Soul disclosed that it owed millions to over 500 creditors, some of which include Sony Pictures, Warner Bros, Walgreens and Walmart.
As of March of this year, the company had about $414 million in assets and $970 million in debts. Shares for the public company have fallen more than 90% over the last year.
Redbox was acquired by Chicken Soup for the Soul in 2022.
At the time, the company billed the merger as the start of an entertainment conglomerate set to reach consumers across mediums and boost revenue, but losses continued to pile up. The acquisition also included the assumption of Redbox’s reported $325 million debt.
Chicken Soup for the Soul noted in its bankruptcy filing that it currently operates about 27,000 kiosks across the U.S. — down from 36,000.
The company also operates ad-supported streaming and video on-demand offerings. That includes Redbox Live TV and Crackle, a streamer that Chicken Soup for the Soul acquired from Sony.
The Associated Press contributed to this report. This story was reported from Los Angeles.