The judge overseeing the bankruptcy case of Redbox owner Chicken Soup for Soul Entertainment reportedly approved a request Wednesday to move the company from Chapter 11 to Chapter 7 bankruptcy. Lowpass“Janko Rotgers and wall street journal. Chicken Soup for the Soul will lay off its remaining 1,000 employees and liquidate its operations, including its streaming business and about 24,000 kiosks that have rented DVDs, Blu-rays and video games over the years, company lawyers said.
According to Rutgers, Judge Thomas Holland said: “There is no way to continue to pay employees, pay any bills or fund this case. It is hopelessly insolvent…given that at least there has been misappropriation the possibility of employee trust funds, so there is good reason why the case should be converted.
In addition to operating Redbox, Chicken Soup for the Soul Entertainment also manages brands such as Crackle and Screen Media. (Please note that Chicken Soup for the Soul Entertainment is part of Chicken Soup for the Soul, LLC; under wall street journal.)
Chicken Soup for the Soul Entertainment did not immediately respond to a request for comment.
