A large retailer with 29,000 stores files for bankruptcy, citing assets and obligations ranging from $500 million to $1 billion.
The parent business of Redbox, a DVD rental chain with over 29,000 outlets and DVD kiosks, has filed for bankruptcy.
Chicken Soup for the Soul Entertainment is the owner of Redbox, the DVD kiosks you find in front of pharmacies and grocery shops; this is not the same firm that sells self-help books under that name.
In 2022, the business paid $357 million in debt and shares to purchase Redbox.
According to TheStreet, this circumstance has resulted in substantial debt, difficulties paying staff, and a Chapter 11 bankruptcy case.
In Delaware, Chicken Soup for the Soul Entertainment filed for Chapter 11 bankruptcy, alleging assets and obligations ranging from $500 million to $1 billion.
The company filed after failing to acquire funding and skipping a week’s worth of staff payments.
“We filed for Chapter 11 bankruptcy protection overnight.
We have requested for the approval of a debtor-in-possession (DIP) loan in conjunction with the filing.
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We anticipate funds for payroll to be received early in the week, subject to court permission, and funding for payroll to be received next week as well.
Additionally, we anticipate having the money necessary to restore medical coverage until May 14, 2024, and beyond.
We’ll keep you informed on a regular basis,” the business sent an email to staff members.
For up to $100 million, the firm has obtained a DIP loan to support operations during the bankruptcy process.
The two strikes in 2023 limited the Hollywood studio pipeline in addition to the transaction’s financial burden, which made the fall in physical disc rentals even more severe.
According to the source, some filmmakers and vendors had also not received their due payments, and some had even filed lawsuits.
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