Chicken Soup for the Soul Entertainment, which acquired movie rental service Redbox in 2022, has filed for Chapter 11 bankruptcy protection. Deadline reports. The company recently disclosed net losses of $636.6 million for 2023 in an SEC filing, and Deadline reported just days ago that it had suspended medical benefits and failed to pay payroll, leaving employees without paychecks for a week. In a message to employees on Saturday, Chicken Soup for the Soul Entertainment said it had applied for a debtor-in-possession loan in an attempt to remedy the situation.
“Following court approval, we expect payroll to be funded early this week and funding for next week's payroll to be secured as well,” the message said, according to the statement. Deadline. “We also expect to have the funding to reinstate medical benefits from May 14, 2024 onwards.” The $375 million deal to acquire Redbox brought with it a ton of debt and, according to The edgeChicken Soup for the Soul Entertainment owes money to a host of retailers, studios and streaming platforms, including Walmart, Universal and Sony, as well as other creditors.
Its total debts amount to about $970 million. Chicken Soup for the Soul Entertainment also owns the streaming service Crackle and a few other film and television brands, as well as selling the long-running self-help books for which it is best known.
