Losses of $636 million and debts of $970 million: Company that owns Redbox and streaming service Crackle files for bankruptcy

Chicken Soup for the Soul Entertainment, the company that owns Redbox and the Crackle streaming service, has filed for bankruptcy protection.

Here's What We Know

This happened after the company announced a net loss of USD 636.6 million for 2023 and suspended healthcare benefits and did not pay salaries to employees.

Chicken Soup for the Soul acquired Redbox, a DVD rental service, in 2022 for $375 million. This deal brought with it significant debt, which, combined with Redbox's declining popularity, led to the company's financial problems.

Chicken Soup for the Soul Entertainment's total debt is about $970 million.

The company expects to be able to pay salaries to employees and restore healthcare benefits after the court approves its bankruptcy filing.

Source: Deadline