2 days Ago By Dade Hayes
After months of financial struggles, Redbox parent Chicken Soup for the Soul Entertainment has filed for Chapter 11 bankruptcy protection. The company relayed news of the Delaware court filing in a message to employees in the early hours of Saturday. “Overnight we filed for Chapter 11 bankruptcy protection,” the message said.
“In connection with the filing, we have applied for approval of a debtor in possession [DIP] loan. Upon court approval, we expect payroll to be funded early in the week and funding for this upcoming week’s payroll to also be secured. We also expect to have the funds to reinstate medical benefits back to May 14, 2024 and going forward.
We will provide regular updates.” Related Stories News Troubled Redbox Parent Chicken Soup For The Soul Entertainment Is Nearly A Week Late Paying Employees; Medical Benefits Also Cut News Ailing Redbox Owner Chicken Soup For The Soul Entertainment Removes Entire Board Of Directors Except For Chairman And CEO Bill Rouhana Delinquent payroll and suspended benefits, first reported last week by Deadline , became the latest fire for the company to put out. It has been struggling over the past year in the wake of taking on Redbox in a debt-heavy deal valued at $375 million.
In addition to the financial burden of the transaction, the Hollywood studio pipeline was constricted by the dual strikes in 2023 and physical rentals also continue to decline. Vendors and filmmakers had gone unpaid and some had filed lawsuits. The .
