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Redbox’s owner files for bankruptcy after repeatedly missing payments and payroll (www.theverge.com)

submitted 5 months ago by Bishma@discuss.tchncs.de to c/technology@lemmy.world

24 comments fedilink hide all child comments

informed employees of the filing late Friday [...] that it had filed for a debtor-in-possession loan — a way for companies that are reorganizing after filing for bankruptcy to secure additional working capital to meet payroll. [...] employees have been waiting for paychecks since June 21st [...] it’s not certain that the company will be able to secure such a loan.

Chicken Soup took on $325 million in debt when it acquired Redbox in 2022 and has since been sued over a dozen times over unpaid bills.

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[–] partial_accumen@lemmy.world 16 points 5 months ago (1 children)

I'm not sure that was much of an issue for DVD. Historically VHS had those huge licensing terms for new releases ($90 for VHS), but the same rules didn't apply to DVD (new releases $20). This was one of the main reasons VHS rentals died so fast after DVDs came out.

Also at least at one time, I remember Redbox was simply buying DVDs at retail stores instead of buying from retail stores for their disc inventory. I see that Walmart is listed as a creditor. That makes me think perhaps Redbox still was.

[–] schizo@forum.uncomfortable.business 20 points 5 months ago (1 children)

I'd wager walmart is listed because they weren't paying their floor rent for all the redboxes they have at walmarts, not that they were buying DVDs there.

[–] partial_accumen@lemmy.world 5 points 5 months ago

Thats a very good point.