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 reported net losses of $636.6 million for 2023 in an SEC filing, and Deadline reported just a few days ago that it had suspended medical benefits and missed payroll, leaving workers without pay for a week. In a message to employees on Saturday, Chicken Soup for the Soul Entertainment said it had applied for an accounts receivable loan in an attempt to remedy the situation.
“Following court approval, we expect salaries to be funded early this week and funding for next week’s salaries will also be secured,” the release said. Deadline“We also expect to have the funds to restore medical benefits through May 14, 2024 and beyond.” The $375 million deal to acquire Redbox came with a lot of debt, and according to The edgeChicken Soup for the Soul Entertainment owes money to a slew of retailers, studios and streaming platforms – including Walmart, Universal and Sony – as well as other creditors.
Total debt is about $970 million. Chicken Soup for the Soul Entertainment also owns the streaming service Crackle and a few other film and TV brands, in addition to selling the long-running self-help books it’s best known for.