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Chicken Soup for the Soul Entertainment (CSSE) has filed for bankruptcy nearly two years after acquiring DVD rental company Redbox.
CSSE, the ad-supported video-on-demand streaming service that also owns Crackle, disclosed in a Delaware filing that it owes nearly $1 billion to more than 500 creditors, including Walmart, Walgreens and Sony Pictures.
A Redbox automated DVD rental kiosk on Sept. 16, 2009, in Golden, Colorado. (Reuters/Rick Wilking/Reuters)
The company had assets of about $400 million as of the end of March, according to filings.When it acquired Redbox in 2022, CSSE inherited $325 million in the DVD rental company’s debt.
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A Redbox automated DVD rental kiosk on Sept. 16, 2009, in Golden, Colorado. (Reuters/Rick Wilking/Reuters)
CSSE is a subsidiary of Chicken Soup for the Soul LLC, which publishes the popular book series. The company told FOX Business it cannot comment beyond court filings.
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CSSE shares have plummeted nearly 90% over the past year and were trading around $0.12 on Monday following the news.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| CSSE | Hearty chicken soup. | 0.12 | -0.08 | -40.26% |
Chicken Soup for the Soul Entertainment
The bankruptcy filing was filed two days later. Deadline reported CSSE had delayed paying employees’ salaries by nearly a week and employees’ medical benefits had been suspended.
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Redbox currently has about 27,000 DVD rental kiosks in retail stores across the United States, according to the filing.
