Say goodbye to Redbox

It's the end of the line for Redbox and its DVD rental kiosks. The movie rental service's parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy in late June. But it apparently shifted its filing from Chapter 11 to Chapter 7, which means it intends to liquidate its business altogether instead of putting the company through a reorganization. According to Deadline, the company was initially looking to raise funds by selling some assets and keeping around 100 employees. However, in the end, it decided that the best course of action was to let all 1,000 Redbox employees go and to shut down all 24,000 Redbox kiosks.

"There is no means to continue to pay employees, pay any bills, otherwise finance this case," US bankruptcy judge Thomas Horan said, according to Lowpass. Horan also said that there's "at least the possibility of misappropriation of funds that were held in trust for employees." Redbox couldn't pay its people for nearly a month, and its parent company had to secure a loan of $8 million for their salaries and to be able to restore their medical benefits that haven't been active since mid-May.

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