Chicken Soup for the Soul Entertainment, the parent company of movie rental company Redbox, known for its distinctive red kiosks, filed for Chapter 11 bankruptcy protection on Friday.
In the lawsuit, Chicken Soup listed debts of about $970 million and total assets of about $414 million. It owes millions to entertainment and media companies, including Universal Studios, Sony Pictures and BBC Studios Americas, as well as some retailers, such as Walgreens and Walmart, according to court documents.
Chicken Soup for the Soul was founded in 1993 by two motivational speakers, Jack Canfield and Mark Victor Hansen. The company’s series of inspirational books, with titles such as “From Lemons to Lemonade” and “Angels Among Us,” contains collections of stories for specific audiences, such as new mothers or cat lovers.
Her original book, published more than 30 years ago, offers life advice and stories about overcoming obstacles in the hope that it will heal readers’ souls in the same way that “chicken soup has a healing effect on the bodies of the sick.”
The company, which has published more than 300 titles, has sold more than 500 million copies worldwide.
Chicken Soup for the Soul Entertainment is separate from its book publishing division, which is not affected by the bankruptcy filing. It was not immediately clear whether the Chapter 11 filing would affect Redbox’s operation. The company declined to comment Sunday.
In 2022, Chicken Soup for the Soul Entertainment acquired Redbox, a company founded in 2002 and known for its bright red DVD rental kiosks outside supermarkets and pharmacies. Redbox has about 27,000 kiosks across the United States.
William J. Rouhana Jr. became the company’s chief executive in 2008 and led it with his wife, Amy Newmark, publisher and editor in chief of the book division.
Rouhana attempted to expand the company into different products, including a line of soups, but ultimately failed. He founded the entertainment division of Chicken Soup for the Soul in 2016.
The company applied for assistance to pay its employees, which it has been unable to do “for the two-week period ending June 14, 2024.” Chicken Soup for the Soul Entertainment has about 1,000 full- and part-time employees.
The company reported a net income loss of $636 million in 2023, compared with $111 million in 2022, according to a filing with the U.S. Securities and Exchange Commission. At the time Chicken Soup for the Soul acquired Redbox, the movie rental company had more than $300 million in debt.
