Say goodbye to Redbox
It's the end of the line for Redbox and its DVD rental kiosks. The movie rental service's parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy in late June. But it apparently shifted its filing from Chapter 11 to Chapter 7, which means it intends to liquidate its business altogether instead of putting the company through a reorganization. According to Deadline, the company was initially looking to raise funds by selling some assets and keeping around 100 employees. However, in the end, it decided that the best course of action was to let all 1,000 Redbox employees go and to shut down all 24,000 Redbox kiosks. "There is no means to continue to pay employees, pay any bills, otherwise finance this case," US bankruptcy judge Thomas Horan said, according to Lowpass. Horan also said that there's "at least the possibility of misappropriation of funds that were held in trust for employees." Redbox couldn't pay its people for nearly a month, and its parent company had to secure a loan of $8 million for their salaries and to be able to restore their medical benefits that haven't been active since mid-May. Redbox kiosks, which are typically located in groceries and convenience stores, used to rent out movie DVDs and Blu-ray discs, as well as video games. In 2019, however, it stopped renting out video games to focus on movie rentals and its on-demand streaming service. The company is long past its prime, and its rental service is nowhere near as appealing these days with all the streaming services out there. In fact, the bankruptcy proceedings have revealed that Redbox's payroll obligations were higher than it earnings. Still, the kiosks continued to serve people with no access to a strong and steady internet connection, who'll now have to say goodbye to being able to rent a DVD or two whenever they step out to run errands. This article originally appeared on Engadget at https://www.engadget.com/say-goodbye-to-redbox-130044411.html?src=rss
It's the end of the line for Redbox and its DVD rental kiosks. The movie rental service's parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy in late June. But it apparently shifted its filing from Chapter 11 to Chapter 7, which means it intends to liquidate its business altogether instead of putting the company through a reorganization. According to Deadline, the company was initially looking to raise funds by selling some assets and keeping around 100 employees. However, in the end, it decided that the best course of action was to let all 1,000 Redbox employees go and to shut down all 24,000 Redbox kiosks.
"There is no means to continue to pay employees, pay any bills, otherwise finance this case," US bankruptcy judge Thomas Horan said, according to Lowpass. Horan also said that there's "at least the possibility of misappropriation of funds that were held in trust for employees." Redbox couldn't pay its people for nearly a month, and its parent company had to secure a loan of $8 million for their salaries and to be able to restore their medical benefits that haven't been active since mid-May.
Redbox kiosks, which are typically located in groceries and convenience stores, used to rent out movie DVDs and Blu-ray discs, as well as video games. In 2019, however, it stopped renting out video games to focus on movie rentals and its on-demand streaming service. The company is long past its prime, and its rental service is nowhere near as appealing these days with all the streaming services out there. In fact, the bankruptcy proceedings have revealed that Redbox's payroll obligations were higher than it earnings. Still, the kiosks continued to serve people with no access to a strong and steady internet connection, who'll now have to say goodbye to being able to rent a DVD or two whenever they step out to run errands. This article originally appeared on Engadget at https://www.engadget.com/say-goodbye-to-redbox-130044411.html?src=rss
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