RIP Redbox. The DVD kiosk business will shut down and fire 1,000 people

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The once ubiquitous Redbox's parent company, Chicken Soup for the Soul Entertainment, recently filed for Chapter 11 bankruptcy. That's becoming a liquidation amid allegations of mismanagement.

Redbox, operator of the once-prominent red DVD rental boxes known for quick movie checkouts at grocery stores and pharmacies, has flatlined. The business' parent company, Chicken Soup for the Soul Entertainment, received court approval on Wednesday to change its bankruptcy filing from Chapter 11 to Chapter 7, with plans to liquidate its assets and lay off 1,000 employees.

One of its kiosks could earn about $50,000 annually in revenue after three years of operation, according to a 2009 L.A. Times report. In 2022, Oakbrook Terrace, Ill.-based Redbox was acquired by Chicken Soup for the Soul Entertainment in a $375-million all-stock deal. At the time, Redbox had 38,000 kiosks in the U.S. Chicken Soup for the Soul Entertainment is a subsidiary of the Cos Cob, Conn.-based publisher known for the uplifting book series of the same name, as well as a line of pet food.

 

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