Redbox set to close as DVD market withers in streaming's shadow
DVD rental service Redbox is set to shut down after 22 years in business, as streaming continues to dominate the at-home entertainment market.
DVD rental service Redbox is set to shut down after 22 years in business, as streaming continues to dominate the at-home entertainment market.
Redbox’s parent company, Chicken Soup for the Soul Entertainment, changed its Chapter 11 bankruptcy case, filed last month, to a Chapter 7 liquidation case on Wednesday. The conversion signifies that the company couldn’t come up with a repayment plan for its outstanding debts and will soon turn to selling off assets to pay back creditors.
With the change to a Chapter 7 case, all employees will now be laid off and Redbox’s 24,000 kiosks will close. Lawyers for Chicken Soup for the Soul told the court they had worked “day and night” to find a solution to avoid the outcome, Deadline reported.
A current Redbox employee, who asked not to be identified due to uncertainty over future legal actions he said some at the company are considering, said the news has been destabilizing.
“Sentiment’s in the gutter,” he said. “We have coworkers who’ve missed rent, facing eviction.”
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