Chicken Soup for the Soul Entertainment (CSSE) has filed for bankruptcy, two years after acquiring Redbox. The company has accumulated nearly $1 billion in debt owed to over 500 creditors, with around $400 million in assets. CSSE's stock has plummeted nearly 90% over the past year, trading at around $0.12. The bankruptcy filing came after reports of late employee payments and suspended health care benefits. Redbox, with around 27,000 DVD rental kiosks, is owned by CSSE and has also filed for bankruptcy. The company has defaulted on loans, faced car repossession orders, and missed employee payroll. CSSE informed employees of the filing and promised to reinstate health insurance. The company owes money to retailers, major Hollywood studios, smaller studios, streaming platforms, smart TV manufacturers, landlords, and other vendors. The bankruptcy filing also revealed that CSSE took on $325 million in debt when acquiring Redbox in 2022. The company has not provided further comments beyond the court filing. This development raises concerns about the future of Redbox and CSSE's other assets, including Crackle, the ad-supported video-on-demand streaming service.
