Redbox shuts down DVD kiosk-rental business: reports

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Redbox Shuts Down DVD Kiosk-Rental Business After News

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Redbox is no more. Its parent company has converted its bankruptcy filing to Chapter 7 liquidation.

Redbox has shut down its DVD kiosk-rental business after its parent company Chicken Soup for the Soul Entertainment filed for liquidation bankruptcy.The number of Redbox kiosks had grown to about 34,000 across the US, largely located at grocery and drug stores. Since its 2002 launch, Redbox had rented its 1 billion discs at prices cheaper than cable, according to its website.

Variety reported the company's 1,000 employees are losing their jobs without any severance or extended benefits. The parent company of Redbox, those distinctive, red-colored kiosks at grocery stores that sell or rent DVDs, has filed for bankruptcy after enduring months of financial struggle. Filings show that the company took on about $325 million in debt following its purchase of Redbox in 2022 from private equity giant Apollo Global Management. The plan was to make it into an entertainment conglomerate, combining the DVD rental business with its free streaming services, like Crackle, the entertainment platform once owned by Sony.

 

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