Redbox shuts down after parent company files for bankruptcy

Redbox, known for its nostalgia-laden movie-rental kiosks, is shutting down operations following the bankruptcy filing of its parent company, Chicken Soup for the Soul Entertainment (CSSE). The decision marks the end of an era for the physical-media rental service, which began in 2002 and peaked in popularity in 2013 with its bright-red touch-screen machines at locations such as Walmart and CVS.

CSSE filed for Chapter 7 bankruptcy in Delaware bankruptcy court on Wednesday, signaling the liquidation of the company. Last month, CSSE had sought Chapter 11 bankruptcy protection, reporting nearly $1 billion in debt to various media businesses and retailers, including Sony Pictures Home Entertainment and Walgreens. According to the Wall Street Journal, more than 1,000 employees of the company will be laid off, with reports indicating that workers had not received paychecks and had their medical benefits cut in late June.

HPS Investment Partners, a lender for CSSE, alleged in court filings that the company was being grossly mismanaged. Redbox was acquired by CSSE in 2022 and became one of its flagship video-on-demand streaming services. The company also operated over 20,000 DVD-rental kiosks, the video entertainment network Crackle, and the Chicken Soup for the Soul streaming platform.

The end of Redbox’s operations is reminiscent of Blockbuster, the once-dominant rental store chain that filed for bankruptcy protection in 2010 and subsequently closed almost all of its 9,000 stores. Today, only one Blockbuster location remains, in Bend, Oregon. Representatives for CSSE and Redbox did not immediately respond to requests for comment.

Netflix, which started as a DVD rental service mailing TV shows and movies to subscribers, also transitioned away from physical rentals, ceasing its DVD service last year after 25 years.