Company Files For Bankruptcy and Closes All Michigan Locations
A company stopped paying employees and let their health insurance lapse as everything fell apart.
Progress has always come with a cost. We couldn't live without the internet now. But it's safe to say that because of the internet, there are almost no music stores, bookstores, or video stores. For example, all corporately owned Blockbuster video stores were closed by 2014. Then there's Redbox. This DVD kiosk business began in 2002. Before we could easily download and/or stream movies from home, Redbox did very well and quickly spread across the country. However, streaming services have all but killed the success of this business model.
For some reason, Chicken Soup for the Soul Entertainment purchased the failing business model in 2022. Chicken Soup has filed for a debtor-in-possession loan which many people depend on but it's not a guarantee according to the Verge,
It’s a pressing matter for the company, as employees have been waiting for paychecks since June 21st. The company also promised to reinstate health insurance for his employees, which had lapsed in May.
Chicken Soup for the Soul Entertainment owes dozens of large and small companies millions of dollars. It's unclear if they will be approved for a debtor-in-possession loan. To make matters worse, they have now switched from Chapter 11 to Chapter 7 bankruptcy according to Deadline.com. The company now plans to lay off all 1,000 employees and close all 24,000 Redbox kiosks around the country.
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I drove to the nearest Redbox location which is in front of the now-closed Walgreens on Riverview Drive and Gull Road in Kalamazoo and I can confirm, that it is no longer active.
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