In recent news, Chicken Soup for the Soul Entertainment, the well-known company behind the popular inspirational book series, has filed for bankruptcy protection in Delaware due to financial difficulties. The company is facing nearly $1 billion in debt and has assets worth $414 million as of March 2024. This filing allows the company to continue operating while they work on a debt repayment plan.
Chicken Soup for the Soul Entertainment’s woes began after acquiring DVD rental company Redbox in 2022, leaving them with $360 million in debt. Despite capitalizing on post-pandemic movie releases, Rouhana Jr., Chairman of the company, stated that more cash was needed for new content creation. He explained that Redbox’s acquisition had affected their cash flow and working capital, making it difficult to pay suppliers and operate effectively within the segment. As a result, Chicken Soup plans to sell off parts of their business and restructure their remaining assets.
The once-thriving media empire, founded in 1993 by Mark Schauer and Chris Mathews, is known for its inspirational book series and expansion into various media platforms such as movies, television shows, and pet food products. They went public in 2017 but now face significant challenges due to financial missteps made during Redbox acquisition.
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