NEW YORK (AP) — Rooster Soup for the Soul Leisure, the father or mother of DVD rental operator Redbox, has filed for Chapter 11 chapter safety.The chapter submitting comes after months of a sequence of economic struggles for the corporate and piling unpaid payments. Rooster Soup for the Soul has collected almost $1 billion in debt, the Chapter 11 submitting submitted Friday in Delaware chapter court docket exhibits, after reporting loss after loss over current quarters. The submitting additionally discloses that Rooster Soup for the Soul owes tens of millions to over 500 collectors — which vary from huge names within the leisure world like Sony Footage and Warner Bros, to main retailers like Walgreens and Walmart.As of March of this yr, Friday’s submitting exhibits, Rooster Soup for the Soul had about $414 million in belongings and $970 million in money owed. Shares for the general public firm have fallen greater than 90% over the past yr.
Connecticut-based Rooster Soup for the Soul declined to remark when reached by 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 acquired Redbox in 2022. On the time, the corporate billed the merger as the beginning of an leisure conglomerate set to achieve customers throughout mediums and enhance income, however losses continued to pile up. The acquisition additionally included the idea Redbox’s reported $325 million in debt.
Redbox, based in 2002, is greatest recognized for red-colored, self-serve machines that sit exterior of pharmacies or groceries shops to hire or promote DVDs. In Friday’s submitting, Rooster Soup for the Soul famous that it presently operates about 27,000 kiosks throughout the U.S. — down from 36,000 on the Redbox acquisition was finalized in August 2022.Rooster Soup for the Soul additionally operates ad-supported streaming and video on-demand choices. That features Redbox Dwell TV and Crackle, a streamer that Rooster Soup for the Soul acquired from Sony.