Rooster Soup for the Soul Leisure, which acquired the film rental service Redbox in 2022, has filed for Chapter 11 chapter safety, Deadline reviews. The corporate lately disclosed web losses of $636.6 million for 2023 in a SEC submitting, and Deadline reported only a few days in the past that it had suspended medical advantages and missed payroll, leaving staff with out their paychecks for per week already. In a message to staff on Saturday, Rooster Soup for the Soul Leisure mentioned it had utilized for a debtor-in-possession mortgage in an try to treatment the scenario.
“Upon court docket approval, we count on payroll to be funded early within the week and funding for this upcoming week’s payroll to even be secured,” the message mentioned, per Deadline. “We additionally count on to have the funds to reinstate medical advantages again to Could 14, 2024 and going ahead.” The $375 million deal to amass Redbox introduced with it a ton of debt, and in response to The Verge, Rooster Soup for the Soul Leisure owes cash to a slew of shops, studios, and streaming platforms — together with Walmart, Common and Sony — in addition to different collectors.
Its whole money owed come to about $970 million. Rooster Soup for the Soul Leisure additionally owns the streaming service Crackle and some different movie and TV manufacturers, along with promoting the long-running self-help books it’s greatest identified for.