Redbox Bankruptcy Sale!

Redbox Bankruptcy Sale!

The last bastion of video rental just went bankrupt. Gather around, and let us tell you a tale.

Long ago (they called it the '90s), before the arrival of streaming, there was a place called Blockbuster—a mecca of video rentals, strange videogames, and endless wanderings. When people no longer needed to get their movies physically, Blockbusters across the nation closed their doors forever. But ever resilient, the second-best DVD rental stood its ground. The lone Redbox soldier kept its post in front of CVS and inside grocery stores, full of DVDs one could rent and return (assumedly) at a later date.

While the world changed around it, Redbox stayed the course silently in the background.

Now, Redbox is truly on its last stand. Citing financial distress, its parent company—another '90s relic, Chicken Soup for the Soul Entertainment—filed for bankruptcy in 2023, reporting an eye-watering $636.6 million in losses, up from $111.2 million the year prior. The strikes hit them hard. Investors cut their losses. The company quickly transitioned from Chapter 11 to a full Chapter 7 liquidation, laying off 1,000 employees with no severance or benefits and idling 24,000 kiosks.

But in true video store fashion, the story doesn’t end there.

Later this month, the company’s trademarks and remaining assets—yes, including those familiar red kiosks—will go up for auction at the Hudson Yards offices of Milbank LLP in New York. Joining Redbox in the clearance bin is Crackle (Sony’s old ad-supported streamer) and a trove of films from specialty label Screen Media. The whole collection of nostalgia-soaked assets is looking for a new home.

Meanwhile, former employees are pursuing legal action against Chicken Soup's ex-CEO Bill Rouhana, accusing him of orchestrating the reckless $375 million Redbox acquisition and acting “in his own self-interest.”

So ends the tale—for now. But who knows? In the entertainment business, auctions have a funny way of rebooting old brands. Just ask the Weinstein Company… or Spyglass Media Group.