Source: SOPA Images/Getty/Redbox
The parent company of Redbox and Crackle, Chicken Soup For The Soul Entertainment, has filed for Chapter 11 bankruptcy after failing to pay workers and vendors for the past four weeks.
It has been detected Varietythe company filed for bankruptcy on June 28 in the US Bankruptcy Court for the District of Delaware.
In the filing, Chicken Soup For The Soul Entertainment listed total debt of $970 million and consolidated assets of $414 million as of March 31, 2024.
The entertainment company reported $4.9 million in cash and cash equivalents, including $4.6 million in restricted cash.
Per Variety:
Creditors listed in CSSE's bankruptcy include Universal Studios Home Entertainment (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 approximately 836 full-time employees and 197 part-time employees (1,033 total). In a court filing, the company estimated it owes workers about $3.52 million in unpaid wages and is also required to pay $2.24 million in health and welfare benefits and $594,204 toward workers' 401(k) plans. Chicken Soup for the Soul Entertainment revealed that it was “unable to make payroll for the two-week period ending June 14, 2024.”
The site also reports that CEO Bill Rouhana Jr. (which holds 79% of the voting power represented in its common stock) said in an SEC filing on June 11, 2024 that the company had dissolved its board of directors.
Rouhanan will step down on June 24, bankruptcy documents revealed.
Right now, Redbox still works; It will be interesting to see if the company closes due to the financial problems of its parent company.
