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RIP: Redbox
Jul. 12th, 2024 09:17 amRedbox is going away.
Formerly unbeknownst to me, its owner is the corp Chicken Soup For The Soul Entertainment. This has been in the news recently, and I've been following it. They've fallen massively behind in royalty payments to people like NBC, etc. and finally they filed Chapter 11 bankruptcy, i.e. reorganization.
It didn't go well.
The judge signed off on a petition by Chicken Soup's creditors to force them into Chapter 7 bankruptcy, liquidation.
So all of those kiosks at Walgreens and gas stations and etc. will be going away, not to mention a lot of jobs will be lost of those servicing those machines and stocking them.
While it's easy to say 'What's the market for DVD rental?', as a librarian I'll say that there's a very brisk trade in borrowing DVDs from libraries for free. LOTS of people don't have home internet connections for streaming, and rely on services like this for new content. It's kind of a shame to see it go away as it definitely fills a need in communities, but I guess they just couldn't keep it profitable.
The story is not obvious, though. Chicken Soup's CEO has been in the role for TWO WEEKS, and just resigned, 'for unrelated reasons'. Cue rats leaving sinking ship.
From the article: “There is no means to continue to pay employees, pay any bills, otherwise finance this case. It is hopelessly insolvent,” United States bankruptcy judge Thomas Horan determined during a hearing Wednesday, adding: “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 [from Chapter 11 to Chapter 7]. So I am going to grant the motion.” (edit mine)
The article goes on to describe them being unable to pay the fleet company they get their cars from, unable to pay the stores from whom they lease space for their kiosks, and the misappropriation bit about them continuing to withhold 401(k) and health insurance premiums from employee checks but not paying them to the appropriate funds.
So Redbox will be liquidated, and we'll see if some attorneys general start criminal investigations.
https://www.lowpass.cc/p/redbox-shutting-down
Formerly unbeknownst to me, its owner is the corp Chicken Soup For The Soul Entertainment. This has been in the news recently, and I've been following it. They've fallen massively behind in royalty payments to people like NBC, etc. and finally they filed Chapter 11 bankruptcy, i.e. reorganization.
It didn't go well.
The judge signed off on a petition by Chicken Soup's creditors to force them into Chapter 7 bankruptcy, liquidation.
So all of those kiosks at Walgreens and gas stations and etc. will be going away, not to mention a lot of jobs will be lost of those servicing those machines and stocking them.
While it's easy to say 'What's the market for DVD rental?', as a librarian I'll say that there's a very brisk trade in borrowing DVDs from libraries for free. LOTS of people don't have home internet connections for streaming, and rely on services like this for new content. It's kind of a shame to see it go away as it definitely fills a need in communities, but I guess they just couldn't keep it profitable.
The story is not obvious, though. Chicken Soup's CEO has been in the role for TWO WEEKS, and just resigned, 'for unrelated reasons'. Cue rats leaving sinking ship.
From the article: “There is no means to continue to pay employees, pay any bills, otherwise finance this case. It is hopelessly insolvent,” United States bankruptcy judge Thomas Horan determined during a hearing Wednesday, adding: “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 [from Chapter 11 to Chapter 7]. So I am going to grant the motion.” (edit mine)
The article goes on to describe them being unable to pay the fleet company they get their cars from, unable to pay the stores from whom they lease space for their kiosks, and the misappropriation bit about them continuing to withhold 401(k) and health insurance premiums from employee checks but not paying them to the appropriate funds.
So Redbox will be liquidated, and we'll see if some attorneys general start criminal investigations.
https://www.lowpass.cc/p/redbox-shutting-down
