Chicken Soup for the Soul Entertainment Files for Bankruptcy Amid Financial Struggles

Chicken Soup for the Soul Entertainment (CSSE) has filed for bankruptcy, marking a significant downturn for the company just two years after its acquisition of DVD rental service Redbox. The Delaware filing reveals that CSSE has amassed nearly $1 billion in debt owed to over 500 creditors, including major retailers like Walmart and Walgreens, as well as Sony Pictures. As of March, the company reported approximately $400 million in assets, raising concerns about its financial viability. The acquisition of Redbox in 2022 came with a hefty price tag, as CSSE took on $325 million in debt from the rental company. CSSE, a subsidiary of Chicken Soup for the Soul, LLC, which is known for its popular book series, has seen its stock value plummet nearly 90% over the past year, trading at around $0.12 following the bankruptcy announcement. The company has refrained from commenting further beyond the court filing. The bankruptcy filing comes on the heels of reports indicating that CSSE was nearly a week late in paying its employees, with workers' health care benefits also suspended. This situation has raised alarms about the company's operational stability and its ability to maintain its workforce. Currently, Redbox operates approximately 27,000 DVD rental kiosks across the United States, but the future of these kiosks remains uncertain amid the ongoing financial turmoil.