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

submitted 4 months ago by Bishma@discuss.tchncs.de to c/technology@lemmy.world

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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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[–] Wispy2891@lemmy.world 16 points 4 months ago (1 children)

wait they paid 325 millions in 2022 for Redbox???

Why???

How they thought they could have a return on that investment??!

[–] sugar_in_your_tea@sh.itjust.works 8 points 4 months ago

They have 38,000 kiosks. So that's ~$10k/kiosk.

Honestly, that may be a fair price, assuming these machines are profitable. Vending machines make $4-10k revenue/year. Assuming that holds for RedBox, that should make >$2k profit per year, which would make aquisition reasonable. The question is, is that what they're getting?

If I were in their shoes, I'd expand the options at the kiosks to include console games, and maybe a limited selection of snacks (e.g. popcorn), if it can be retrofitted.