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Chicken Soup for the Soul Entertainment, which acquired movie rental service Redbox in 2022, has filed for Chapter 11 bankruptcy protection. deadline The company recently announced in an SEC filing that it expects a net loss of $636.6 million for 2023. deadline The company reported that employees have already not received pay for a week, after it suspended medical benefits and defaulted on payroll several days ago. In a message to employees on Saturday, Chicken Soup for the Soul Entertainment said it had applied for a debtor-in-possession loan to remedy the situation.
“If approved by the court, payroll funding will be available early this week and this week’s payroll funding will also be secured,” the message said. deadline“We also expect to have the funds available to resume medical benefits through May 14, 2024.” The $375 million deal to acquire Redbox came with a lot of debt. The VergeChicken Soup for the Soul Entertainment owes money to numerous retailers, studios, streaming platforms and other creditors, including Walmart, Universal and Sony.
The company has about $970 million in total debt. In addition to selling some of its best-known self-help books, Chicken Soup for the Soul Entertainment also owns the streaming service Crackle, as well as other film and TV brands.