Redbox’s parent, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy in June 2024. A bankruptcy court converted the cases to Chapter 7 liquidation on July 10, 2024. The distinction matters: Redbox’s owner did not initially file for Chapter 7.
Who owned Redbox?
Redbox was owned by Chicken Soup for the Soul Entertainment, the entertainment company whose businesses also included Crackle and Chicken Soup for the Soul-branded entertainment services. Redbox entities were among the debtors in the bankruptcy cases. The company is distinct from Chicken Soup for the Soul, LLC, the book publisher; the petition identified the publisher separately as the entertainment company’s parent.
The entertainment company acquired the Redbox business in 2022. In its account of the company’s financial distress, the U.S. Bankruptcy Court for the District of Delaware connected the acquisition and its debt load with subsequent difficulty maintaining content rights, declining revenue, and cash-flow and liquidity problems. That is the court’s description of the circumstances, not a finding that one factor alone caused the bankruptcy. (Court opinion in Skajem v. Rouhana)
Why did the bankruptcy move from Chapter 11 to Chapter 7?
Chapter 11 is a form of bankruptcy in which a business may seek to reorganize while addressing its debts. Chapter 7 is liquidation: a trustee administers the bankruptcy estate and handles its assets and claims under the court process. Here, the sequence was Chapter 11 first, then Chapter 7.
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The court’s opinion states that the debtor and several subsidiaries filed for Chapter 11 relief on June 28, 2024, and that the cases were converted to Chapter 7 on July 10. The debtor’s petition was filed June 29, 2024. In describing the pressure following the Redbox acquisition, the court wrote that the debtor “was unable to service its larger debt load.” The opinion links that burden to problems with content rights and weakening revenue, cash flow, and liquidity; it does not reduce the collapse to a single cause. (U.S. Bankruptcy Court for the District of Delaware, Skajem v. Rouhana; June 29, 2024 Chapter 11 petition)
How many Redbox kiosks were involved?
The filings offer estimates at different points in the bankruptcy, not a single reconciled final count.
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| Filing | Estimated kiosks | What the number means |
|---|---|---|
| Chicken Soup for the Soul Entertainment petition, June 29, 2024 | Approximately 27,000 | The debtor’s estimate of its DVD rental kiosk network in its Chapter 11 petition. |
| Bungalow Media + Entertainment motion, October 1, 2024 | Approximately 24,000 | A creditor’s later estimate, recounted in a motion in the Chapter 7 cases. |
The estimates differ by roughly 3,000, but the filings do not establish why. Because they come from separate documents and dates, neither should be presented as an exact final count. (Debtor’s petition; Bungalow Media + Entertainment motion)
Did Redbox kiosks keep operating?
In an October 1, 2024 motion concerning a particular film-distribution contract, creditor Bungalow Media + Entertainment said Redbox was no longer operating and reported seeing no apparent distribution channels for the film tied to its contract. That statement is evidence of the situation described in that creditor’s filing at that time; it does not establish the status of every kiosk or every service, then or now. (Bungalow Media + Entertainment motion)
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The available record does not establish whether a specific kiosk remains at a particular location in October 2026. The bankruptcy docket shows estate proceedings continuing, but activity in the case is not proof that the rental network resumed or that any individual machine is operating.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is happening in the bankruptcy case now?
A docket mirror accessed October 8, 2026 listed activity through September 29, 2026, including a trustee’s compromise motion and a hearing listed for October 28, 2026. That snapshot indicates the estate process was still active; it does not say whether the motion was later granted or what creditors may ultimately receive. Check the case docket for developments after that date. (Inforuptcy docket mirror, case 1:24-bk-11442)
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