Redbox is set for an asset sale later this month, marking a downfall from its peak as a leading DVD rental service. The company filed for bankruptcy in June 2024, primarily due to declining revenue as customers shifted to streaming services. Legal proceedings highlight claims of mismanagement by former executives of its parent company, Chicken Soup for the Soul Entertainment. The upcoming auction will feature trademarks and film rights, with offers reportedly exceeding $100 million; however, Redbox's rental kiosks are notably excluded from the sale.
The asset sale is just the latest chapter in Redbox's tumultuous downfall: Once one of the country's biggest DVD vendors, the rental chain saw its revenue evaporate overnight during the pandemic, leading to its bankruptcy in June of 2024.
Much of this had to do with consumers switching to streaming, but the exact circumstances of Redbox's demise remain highly contested: Last month, the trustee in charge of the bankruptcy proceedings filed a lawsuit against Chicken Soup for the Soup Entertainment's former executives and board, alleging that the company and its subsidiaries were 'victim of mismanagement and pillaging by insiders on a scale rarely seen with public companies.'
When the assets of Redbox and its corporate siblings go on sale on April 23, potential buyers will be able to bid on Redbox's and Crackle's trademarks, patents and other intellectual property.
While it's hard to estimate what the assets will ultimately be selling for, there does appear to be some interest in those film catalogs. The court-appointed trustee noted in a legal filing earlier this year that he had received offers 'in excess of $100 million.'
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