From Yahoo Finance: 2025-04-07 16:20:00

Redbox, Crackle, and Chicken Soup for the Soul Entertainment’s assets are being auctioned in New York after Redbox’s revenue decline during the pandemic led to its bankruptcy in June 2024. The sale includes trademarks, patents, and rights to movies and TV shows, with bids exceeding $100 million.

Redbox, once a major DVD vendor with 27,000 kiosks, filed for bankruptcy in 2022 due to the rise of streaming. Chicken Soup for the Soul Entertainment acquired Redbox for $375 million, but the company continued to struggle financially, leading to bankruptcy and lawsuits.

Executives at Chicken Soup for the Soul Entertainment are accused of mismanagement, using the company as a “personal piggy bank,” and failing to pay payroll taxes. The trustee aims to recover fees paid to executives and auction proceeds to repay the company’s $500 million debt to HPS, the primary lender.

Redbox kiosks, once ubiquitous, are not part of the asset sale, with many already disposed of by retailers due to non-payment of commission fees. The downfall of Redbox, once a billion-dollar company, highlights the challenges faced by DVD rental businesses in the age of streaming services like Netflix and Disney+.

Read more: Redbox goes up for auction following a wild bankruptcy saga