The proprietor of Redbox has filed for Chapter 11 chapter

Rooster Soup for the Soul Leisure, which acquired the film rental service Redbox in 2022, has filed for Chapter 11 chapter safety, Deadline studies. The corporate lately disclosed web losses of $636.6 million for 2023 in a SEC submitting, and Deadline reported only a few days in the past that it had suspended medical advantages and missed payroll, leaving workers with out their paychecks for per week already. In a message to workers on Saturday, Rooster Soup for the Soul Leisure stated it had utilized for a debtor-in-possession mortgage in an try to treatment the scenario.

“Upon courtroom approval, we count on payroll to be funded early within the week and funding for this upcoming week’s payroll to even be secured,” the message stated, per Deadline. “We additionally count on to have the funds to reinstate medical advantages again to Could 14, 2024 and going ahead.” The $375 million deal to accumulate Redbox introduced with it a ton of debt, and in accordance with The Verge, Rooster Soup for the Soul Leisure owes cash to a slew of shops, studios, and streaming platforms — together with Walmart, Common and Sony — in addition to different collectors.

Its whole money owed come to about $970 million. Rooster Soup for the Soul Leisure additionally owns the streaming service Crackle and some different movie and TV manufacturers, along with promoting the long-running self-help books it’s greatest recognized for.