A judge overseeing Redbox owner Chicken Soup for the Soul Entertainment’s bankruptcy case granted a request Wednesday to convert it from Chapter 11 to Chapter 7 bankruptcy, according to Lowpass’ Janko Roettgers and The Wall Street Journal.
It is hopelessly insolvent... Given the fact that there may also be at least the possibility of misappropriation of funds that were held in trust for employees, there is more than ample reason why this case should be converted.” In addition to operating Redbox, Chicken Soup for the Soul Entertainment also manages brands like Crackle and Screen Media. Chicken Soup for the Soul Entertainment didn’t immediately reply to a request for comment.
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