A condo DVD is allotted from a Redbox at a 7-11 in Los Angeles in 2009. Rooster Soup for the Soul Leisure, the landlord of Redbox, filed for Bankruptcy 11 chapter coverage on Friday.
Damian Dovarganes/AP
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Damian Dovarganes/AP
NEW YORK — Rooster Soup for the Soul Leisure, the father or mother of DVD condo operator Redbox, has filed for Bankruptcy 11 chapter coverage. The chapter submitting comes after months of a chain of monetary struggles for the corporate and piling unpaid expenses. Rooster Soup for the Soul has gathered just about $1 billion in debt, the Bankruptcy 11 submitting submitted Friday in Delaware chapter court docket displays, after reporting loss after loss over fresh quarters. The submitting additionally discloses that Rooster Soup for the Soul owes hundreds of thousands to over 500 collectors — which vary from giant names within the leisure international like Sony Footage and Warner Bros, to primary outlets like Walgreens and Walmart.
As of March of this yr, Friday’s submitting displays, Rooster Soup for the Soul had about $414 million in belongings and $970 million in money owed. Stocks for the general public corporate have fallen greater than 90% over the past yr.
Connecticut-based Rooster Soup for the Soul declined to remark when reached by way of The Related Press Monday. In court docket paperwork, the corporate mentioned that its lenders had been unwilling to cooperate with refinancing. Rooster Soup for the Soul obtained Redbox in 2022. On the time, the corporate billed the merger as the beginning of an leisure conglomerate set to succeed in customers throughout mediums and spice up earnings, however losses persisted to pile up. The purchase additionally integrated the idea Redbox’s reported $325 million in debt. Redbox, based in 2002, is best possible recognized for red-colored, self-serve machines that sit down out of doors of pharmacies or groceries retail outlets to hire or promote DVDs. In Friday’s submitting, Rooster Soup for the Soul famous that it these days operates about 27,000 kiosks around the U.S. — down from 36,000 on the Redbox acquisition was once finalized in August 2022. Rooster Soup for the Soul additionally operates ad-supported streaming and video on-demand choices. That comes with Redbox Reside TV and Crackle, a streamer that Rooster Soup for the Soul obtained from Sony.
