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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 4 months ago

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 4 months ago

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 4 months ago

Thats a very good point.

this post was submitted on 29 Jun 2024
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