More local news for Birmingham, Huntsville, and Mobile – Start Today for $1

After 22 years, this video-rental and streaming company is shutting down

Redbox

FILE - A rental DVD is dispensed from a Redbox at a 7-Eleven in Los Angeles on August 7, 2009. Chicken Soup for the Soul Entertainment, the owner of DVD rental operator Redbox, filed for Chapter 11 bankruptcy protection, Friday, June 28, 2024. (AP Photo/Damian Dovarganes, File)AP

By

Redbox, the video-rental and streaming company, known for its red kisosks-- is shutting down.

According to Variety, Redbox’s parent company, Chicken Soup for the Soul Entertainment, changed its Chapter 11 bankruptcy case to Chapter 7 liquidation. As a result, Rebdox will shut down all its DVD rental kiosks and streaming services.

What that means, reports Pennlive.com, is that the company couldn’t figure out a plan to pay off its outstanding debts and will need to sell off its assets in order to pay creditors.

Redbox’s network of 24,000 DVD rental kiosks and its streaming services will be shut down, according to Variety. With the move to liquidate its assets, all of Chicken Soup for the Soul Entertainment’s employees are now unemployed and will not receive severance or extended benefits.

If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.