Redbox Parent Company Files for Bankruptcy Amid Financial Woes
Chicken Soup for the Soul Entertainment (CSSE), the parent company of the well-known Redbox DVD rental kiosks, has filed for bankruptcy following prolonged financial difficulties.
The company disclosed in a recent filing that it is burdened with nearly $1 billion in debt and has significant outstanding payments owed to several entertainment entities. The financial strain increased significantly after the company acquired Redbox from Apollo Global Management in 2022, adding approximately $325 million in debt. The acquisition was part of a strategy to transform into a comprehensive entertainment entity, merging the DVD rental service with its free streaming platforms, such as Crackle, which was previously owned by Sony.
However, this strategy faced setbacks due to Hollywood strikes that stalled new content production and the overall decline in physical DVD rentals—a trend that also led Netflix to exit the DVD rental market last year. Despite these challenges, Redbox has expanded its network to about 34,000 kiosks nationwide, primarily situated in grocery and drug stores. Since its inception in 2002, Redbox has rented over 1 billion DVDs, offering an affordable alternative to cable television.
