Photo by Mario Tama/Getty Images
A judge overseeing Redbox owner Chicken Soup for the Soul Entertainment’s bankruptcy case granted a request Wednesday to convert it from Chapter 11 to Chapter 7 bankruptcy, according to Lowpass’ Janko Roettgers and The Wall Street Journal. The company’s lawyers said Chicken Soup for the Soul Entertainment will lay off its remaining 1,000 employees and liquidate the businesses, including streaming operations and the 24,000 or so disc kiosks that have rented out DVDs, Blu-rays, and videogames for years.
According to Roettgers, Judge Thomas Horan said, “There is no means to continue to pay employees, pay any bills, otherwise finance this case. It is hopelessly insolvent… Given the fact that there may also be at least the possibility of…