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.
this is bad because a lot of rural and lower income places depend on redbox for entertainment
wait they paid 325 millions in 2022 for Redbox???
Why???
How they thought they could have a return on that investment??!
If only Redbox had 4k blurays I’d probably have used them more, but I know that’s probably way too niche.
The last many times I have gone to rent from Redbox their machine was an out of order. Non functional rental machines sure does not help matters.
True, but not paying for maintenance sure does help the executive hit his quarterly numbers to receive a bonus
Capitalism’s great!
Could’ve been triage - deferring maintenance to make payroll. Everything suffering as they try to stay alive. (random speculation 100%)
Imagine that: some scammy motivational speakers who have been peddling a bunch of feel-good bullshit for decades didn’t know how to fix a company that was hemorrhaging money with warm thoughts and regards.
I would have taken that bet.
Yet another example of leveraged buyouts being bad and dumb. The “risk” may be technically on the company you’re buying’s books but it’s really on the employees who actually face the real consequences of the bet failing.
Without the buyout, the company would have failed even earlier. Doesn’t help the employees either.
