Redbox parent company, Chicken Soup for the Soul, files for bankruptcy

Chicken Soup for the Soul, the parent company of DVD rental kiosks Redbox, has filed for bankruptcy.

Chicken Soup for the Soul Entertainment is a subsidiary of the popular self-help book series.

The company has almost $1 billion in debt to more than 500 creditors including, Walmart, Walgreens, Warner Bros. Home Entertainment and Sony Pictures Television, The Wall Street Journal reported.

It filed for bankruptcy protection on Saturday, Deadline reported. Bill Rouhana had been CEO of the company but is being replaced by Bart Schwartz, who will be one of three new board of directors members.

Steven Goldsmith and Josh Mandel are the other two new board members after Rouhana dissolved the board except for himself.

Goldsmith has worked at Amazon, Victoria’s Secret, ShopNBC and Brookstone among others.

Mandel was a two-term treasurer for the state of Ohio, elected in 2010 and re-elected in 2014, Deadline reported.

Chicken Soup for the Soul purchased Redbox in 2022 and took on about $360 million in debt for the deal.

There are about 34,000 rental kiosks across the country.

The company also owns Chicken Soup for the Soul and Crackle, both video-on-demand services, The Wall Street Journal reported.

© 2024 Cox Media Group