Chicken Soup for the Soul Entertainment has filed for Chapter 11 bankruptcy protection as of last Friday. The parent company of the iconic Redbox movie rental service faces a significant dilemma after acquiring Redbox in 2022 and integrating the popular red kiosk DVD rental service into its portfolio.
The bankruptcy filing reveals staggering figures, with debts totaling approximately $970 million against assets of about $414 million. Among its creditors are major entertainment giants like Universal Studios and Sony Pictures, as well as retail giants including Walgreens and Walmart. These debts underscore the financial challenges that have beset Chicken Soup for the Soul Entertainment despite its efforts to diversify.
The fate of Redbox, with its 27,000 distinctive kiosks spread across the United States, remains uncertain in light of the bankruptcy filing. The company has not disclosed how this move will affect its operations and declined to comment on immediate implications. When Chicken Soup for the Soul took over Redbox, the movie rental company was carrying over $300 million in debt.
Despite the setback in its entertainment ventures, Chicken Soup for the Soul’s publishing division remains insulated from the financial turmoil surrounding its entertainment counterpart. The division, known for its enduring series of inspirational books, continues to publish titles that resonate with readers seeking solace and motivation.
Chicken Soup for the Soul’s inaugural book, released over three decades ago, offered life advice and stories of triumph aimed at healing readers’ spirits, akin to the comforting effects of chicken soup on the body of the sick. Since then, the company has published over 300 titles, selling more than 500 million copies globally.