In 2022, Chicken Soup for the Soul Entertainment announced that it would acquire Redbox, a video content rental company that started as a McDonald's side business and was once run by Netflix co-founder Mitch Lowe, for $3.75 million.Rumors suggest it will file for bankruptcy protectionThe reason is that the loss in 2023 will reach 6.37 million US dollars, making it difficult to pay salaries to employees.
According to the explanation of Chicken Soup for the Soul Entertainment, after filing for bankruptcy protection, it will use loans to pay the unpaid wages, but still faces debts owed to cooperative retailers, studios, andStreaming video service CrackleRelated businesses have unpaid fees, and the debtors include Walmart, Universal Pictures and Sony Business.
Currently, Chicken Soup for the Soul Entertainment has accumulated debts of US$9.7 million, most of which is related to the acquisition of Redbox and the difficulty in balancing the expenses of related operational business transformation.
At present, Chicken Soup for the Soul Entertainment will first resolve the related arrears issues through bankruptcy protection, but whether it will restructure its business or split and sell businesses such as Redbox is still unconfirmed.
