Redbox is the most recent house video rental company to come out of the shadows.
A little over a year after its parent company, Chicken Soup for the Soul Entertainment, filed for bankruptcy, the DVD kiosk-rental business — often seen at petrol stations, convenience stores and in retailer doors — is shutting down.
About 1, 000 people will reportedly , lose their jobs without any compensation or prolonged rewards, according to Variety.
Chicken Soup for the Soul — the Connecticut-based conglomerate known for its namesake series of self-help books, ad-supported streaming services ( like Crackle ) and pet food — , acquired Redbox in 2022.
Redbox was apparently$ 325 million in debt at the time of the consolidation. The acquisition was billed as the launch of an entertainment company that would expand its approach and generate more revenue across all channels.
However, Meat Soup for the Soul, which was led by former chairman and CEO William Rouhana, was apparently owed millions of dollars to various businesses when it filed for Chapter 7 bankruptcy in Wilmington, Delaware late last month.
Rouhana, who controls around 80 % of the company’s stock, was accused of use of money, and failing to pay staff for over a month , before being replaced by Bart M. Schwartz , on July 1.
The ending of Redbox follows , Netflix scrapping its pioneering DVD-by-mail support last season, and the , collapse of the juggernaut Blockbuster Video, which filed for bankruptcy in 2010.
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