Rent From Redbox Now!
Redbox has run into some money woes and that can only mean one thing for you! It’s a great time to rent from Redbox! Why? Let us explain!
The History
Back in August, 2022, Redbox (the kiosk company that rents physical discs) was acquired by a corporation called Chicken Soup for the Soul Entertainment. They took on Redbox’s $325 million in debt at the time. Since then, their deficit has grown to $937 million, and their plan to raise $175 million to settle some lawsuits and pay some debts failed. And now they’ve been sued by multiple companies for unpaid debts.
One of those lawsuits was by NBCUniversal, which claimed they were owed $16.7 million for unpaid royalties since February, 2022. Chicken Soup settled with them and agreed to pay the full $16.7 million in installments. The first installment was due June 10th.
The Now
They didn’t pay it.
A judge has now ruled they owe the full amount, all at once, immediately. They haven’t declared bankruptcy…yet.
They’re also facing a lawsuit from the car company that leases over 400 cars to Redbox, and that car company has won the right to repossess all of their vehicles. Chicken Soup has said that the absence of all those vehicles would mean, “Redbox would be compelled to terminate hundreds of jobs and would be put out of business”.
So…things aren’t looking so rosy over at Redbox right now. Seems bad…for them. Probably a great time to rent from Redbox!
Why You Should Rent
It seems obvious the Redbox is not long for this world. Historically, companies in this situation have shuttered their doors with little to no notice to employees. I’m sure that all the Redbox employees out there are all over Linkin looking for their next opportunity. You, on the other hand, should be playing the “rent a movie” lottery with Redbox. If you’ve got a movie in your hand the day they shut the doors, they aren’t exactly going to ask for it back. You could rent a bunch and try to wait them out, but just because they won’t pay their bills doesn’t mean they won’t go after you for your rental fee. Still, it’s a great time to rent!
Thanks to Rob H. of the AV Rant Podcast for basically writing this article.
