Less than two weeks after filing for bankruptcy, Redbox’s parent company has filed to liquidate the company, including its 24,000 bright-red movie rental kiosks found across the United States.
Chicken Soup for the Soul Entertainment (CSSE) officially converted its Chapter 11 bankruptcy to a Chapter 7 liquidation after owing money to businesses that housed the kiosks.
The big picture: CSSE, the parent company, not only owns the Redbox brand but also controls the streaming services Crackle and Chicken Soup for the Soul.
- The acquisition of Redbox by CSSE in August 2022, as part of a $375 million deal, was intended to revive pre-COVID numbers, but the company faced financial hardship, resulting in debt accumulation and insufficient cash flow.
- HPS Investment Partners, a backer of the company, could not extend additional financial resources leading to takeover by Bloomberg on July 2.
- The exact timeline for the closure of Redbox kiosks is unclear.
