Chicken Soup for the Soul Entertainment files for bankruptcy
Chicken Soup for the Soul Entertainment, the parent company of movie rental company Redbox, known for its eye-catching red kiosks, filed for bankruptcy protection on Friday.
In the filing, Chicken Soup listed debts of about $970 million and total assets of about $414 million. It has millions in debt 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 inspirational book series, with titles like “From Lemons to Lemonade” and “Angels Among Us,” includes collections of stories aimed at specific audiences, such as new mothers or cat lovers.
The original book, published over thirty years ago, contained life advice and stories of overcoming obstacles, hoping it would heal the reader’s soul, much as “chicken soup has a healing effect on the body 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 the book publishing business, which is not affected by the bankruptcy filing. It was not immediately clear whether the Chapter 11 filing would affect the Redbox 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 grocery stores and pharmacies. Redbox operates approximately 27,000 kiosks in the United States.
William J. Rouhana Jr. became the company’s CEO in 2008 and led the company with his wife, Amy Newmark, the publisher and editor-in-chief of the book division.
Mr. Rouhana attempted to expand the company with various products, including a line of soups, which ultimately failed. He founded the entertainment division Chicken Soup for the Soul in 2016.
The company has requested a deferment of pay for its employees, which it has been unable to do “during the two-week period ending June 14, 2024.” Chicken Soup for the Soul Entertainment has approximately 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.
