DVD rental service Redbox is set to shut down after 22 years in business, as streaming continues to dominate the at-home entertainment market. Redbox’s parent company, Chicken Soup for the Soul Entertainment, changed its Chapter 11 bankruptcy case, filed last month, to a Chapter 7 liquidation case on Wednesday. The conversion signifies that the company couldn’t come up with a repayment plan for its outstanding debts and will soon turn to selling off assets to pay back creditors.
Founded in 2002, Redbox at its peak shook up Hollywood with its rental service, which was cheaper than buying a DVD at the time. But with the rise of digital offerings and streaming platforms, DVD sales collapsed during the 2010s. In 2022, Redbox had $325 million in debt, and Chicken Soup for the Soul Entertainment acquired it. The parent company had accumulated $1 billion in debt by the time of its bankruptcy filing last month.
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