Entertainment, the proprietor of Redbox, filed for Chapter 11 chapter safety on Friday.” data-template=”https://npr.brightspotcdn.com/dims3/default/strip/false/crop/4080×2720+0+0/resize/width/high quality/high quality/format/format/?url=httppercent3Apercent2Fpercent2Fnpr-brightspot.s3.amazonaws.compercent2Fe4percent2Ff2percent2F36b945034ab68970205d02088af5percent2Fap24183630887127.jpg” data-format=”jpeg”/>
A rental DVD is allotted from a Redbox at a 7-Eleven in Los Angeles in 2009. Hen Soup for the Soul Leisure, the proprietor of Redbox, filed for Chapter 11 chapter safety on Friday.
Damian Dovarganes/AP
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Damian Dovarganes/AP
NEW YORK — Hen Soup for the Soul Leisure, the dad or mum of DVD rental operator Redbox, has filed for Chapter 11 chapter safety.
The chapter submitting comes after months of a sequence of monetary struggles for the corporate and piling unpaid payments. Hen Soup for the Soul has collected practically $1 billion in debt, the Chapter 11 submitting submitted Friday in Delaware chapter courtroom exhibits, after reporting loss after loss over latest quarters.
The submitting additionally discloses that Hen Soup for the Soul owes thousands and thousands to over 500 collectors — which vary from huge names within the leisure world like Sony Photos and Warner Bros, to main retailers like Walgreens and Walmart.
As of March of this yr, Friday’s submitting exhibits, Hen Soup for the Soul had about $414 million in property and $970 million in money owed. Shares for the general public firm have fallen greater than 90% over the past yr.
Connecticut-based Hen Soup for the Soul declined to remark when reached by The Related Press Monday. In courtroom paperwork, the corporate mentioned that its lenders have been unwilling to cooperate with refinancing.
Hen Soup for the Soul acquired Redbox in 2022. On the time, the corporate billed the merger as the beginning of an leisure conglomerate set to achieve customers throughout mediums and increase income, however losses continued to pile up. The acquisition additionally included the idea Redbox’s reported $325 million in debt.
Redbox, based in 2002, is finest identified for red-colored, self-serve machines that sit exterior of pharmacies or groceries shops to hire or promote DVDs. In Friday’s submitting, Hen Soup for the Soul famous that it at the moment operates about 27,000 kiosks throughout the U.S. — down from 36,000 on the Redbox acquisition was finalized in August 2022.
Hen Soup for the Soul additionally operates ad-supported streaming and Video on-demand choices. That features Redbox Reside TV and Crackle, a streamer that Hen Soup for the Soul acquired from Sony.
