Redbox Parent Company Files for Bankruptcy: Impact on DVD Rentals and Employees

United States of America
About 27,000 kiosks across the United States.
Chicken Soup for the Soul Entertainment has reportedly missed payments owed to vendors and filmmakers, prompting some lawsuits.
Employees went without payroll for over a week and medical benefits were suspended.
Redbox offers DVD rentals, Blu-ray rentals, video game rentals at lower prices than competitors. Operates a no-cost streaming service called Crackle.
Redbox parent company Chicken Soup for the Soul Entertainment files for Chapter 11 bankruptcy protection on June 23, 2024.
Struggled with debt accumulated from acquisition and Hollywood writers' and actors' strike.
Redbox Parent Company Files for Bankruptcy: Impact on DVD Rentals and Employees

Redbox, the DVD and Blu-ray rental service known for its bright red kiosks, has faced financial difficulties leading to its parent company Chicken Soup for the Soul Entertainment filing for Chapter 11 bankruptcy protection on June 23, 2024. The filing comes after employees went without payroll for over a week and medical benefits were suspended.

Chicken Soup for the Soul Entertainment, which acquired Redbox in 2022, has reportedly struggled with debt accumulated from the acquisition and the Hollywood writers' and actors' strike that year. The company missed payments owed to vendors and filmmakers, prompting some lawsuits.

Redbox was founded in 2002 and has grown to around 34,000 kiosks across the US. It rents DVDs, Blu-rays, and video games at lower prices than competitors. The company's parent company also publishes inspirational books under the Chicken Soup for the Soul brand.

The bankruptcy filing could help Chicken Soup for the Soul Entertainment address its financial issues and potentially reinstate employee payroll and medical benefits. However, it is unclear how this will impact Redbox's operations or its customers.

Chicken Soup for the Soul was founded in 1993 by Jack Canfield and Mark Victor Hansen. The company has published over 300 titles and sold over 500 million copies worldwide. It is separate from the entertainment division, which includes Redbox, that filed for bankruptcy protection.

The financial struggles of Chicken Soup for the Soul Entertainment come as movie releases have started to bounce back from pandemic-era lows and new content distribution deals are being made. However, insufficient cash flows and working capital have hindered the company's ability to operate efficiently.

Redbox's kiosks offer DVD rentals, Blu-ray rentals, and video game rentals at lower prices than competitors. The company also operates a no-cost streaming service called Crackle. Redbox has about 27,000 kiosks across the United States.

The bankruptcy filing is expected to allow Chicken Soup for the Soul Entertainment to sell off some business units and restructure others while it works on a plan to repay creditors. The company has lined up $20 million of new debt to fund the Chapter 11 process.


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Confidence

91%

Doubts
  • It is unclear how the bankruptcy filing will impact Redbox's operations or its customers.
  • The exact amount of debt accumulated from the acquisition and Hollywood strikes is not mentioned in the article.

Sources

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Redbox's parent company stopped paying employees for over a week before finally filing for bankruptcy

Business Insider Lauren Edmonds Monday, 01 July 2024 15:22
  • Unique Points
    • Chicken Soup for the Soul Entertainment filed for bankruptcy protection on June 23, 2024.
    • Employees of Chicken Soup for the Soul Entertainment have not received payment since June 21, 2024.
    • Company missed payments owed to vendors and filmmakers, prompting some lawsuits.
  • Accuracy
    • Redbox Entertainment filed for bankruptcy protection on June 24, 2024.
    • Employees have worked without health insurance since May, 2024.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Redbox owner Chicken Soup for the Soul files for bankruptcy

CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Jordan Valinsky Monday, 01 July 2024 11:37
  • Unique Points
    • Redbox has around 34,000 kiosks across the US
    • CSSE declined to comment on the situation
    • Employees hadn’t been paid for a week and medical benefits were suspended prior to bankruptcy filing
  • Accuracy
    • Approximately $1 billion in debt and owes millions to various entities including BBC, Sony Pictures, Walmart, and Walgreens
    • CSSE has approximately $1 billion in debt and owes millions to various entities including BBC, Sony Pictures, Walmart, and Walgreens but other articles mention Redbox Entertainment filed for bankruptcy protection on June 24, 2024.
    • The company took on about $325 million in debt following the purchase of Redbox in 2022
    • Chicken Soup for the Soul Entertainment completed a $370 million deal to acquire Redbox Entertainment in 2022
    • Plans to combine DVD rental business with free streaming services didn’t succeed due to Hollywood strikes and decline of physical DVD rentals
    • Movie business rebounded but Chicken Soup needed additional cash for new content purchases.
    • Chicken Soup operates about 24,000 Redbox DVD rental kiosks across the US and runs Crackle streaming service.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

92%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

The owner of Redbox DVD kiosks just filed for bankruptcy, saying results 'failed to meet management’s expectations'

Fortune Media Inc. Shawn Tully Saturday, 29 June 2024 00:00
  • Unique Points
    • Chicken Soup for the Soul Entertainment Inc. filed for bankruptcy.
    • Chicken Soup took on about $360 million of debt in connection with the Redbox acquisition.
  • Accuracy
    • The company listed assets and liabilities of at least $500 million each.
    • Chicken Soup sought to repay creditors through a plan during bankruptcy process.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The article contains an example of a dichotomous depiction and an appeal to authority. The author presents the company's financial situation as dire due to its inability to meet management expectations, but does not clarify whether these expectations were realistic or unattainable given the current market conditions. Additionally, the author cites Chairman William J. Rouhana Jr.'s statement as evidence of the company's struggles, which could be seen as an appeal to authority. No other fallacies were found in the author's statements.
    • Chicken Soup struggled to keep up with its financial obligations after buying DVD rental company Redbox in 2022...
    • But the company’s lenders vetoed a new loan facility, starving the business of funds...
    • The Connecticut-based company was founded in 1993 and named for its feel-good books. Its expansion into film and television programming and video streaming came later...
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Chicken Soup for the Soul Entertainment Files Chapter 11

The New York Times Sara Ruberg Sunday, 30 June 2024 21:54
  • Unique Points
    • Chicken Soup for the Soul was founded in 1993 by Jack Canfield and Mark Victor Hansen.
    • The company has published over 300 titles and sold over 500 million copies worldwide.
  • Accuracy
    • Chicken Soup for the Soul Entertainment filed for Chapter 11 bankruptcy protection on Friday.
    • The company has debts of approximately $970 million and total assets of about $414 million.
    • Employees have worked without health insurance since May, 2024.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication