Movie Company Closing 300 New York Locations

A major name in the movie rental industry, Redbox, is set to close 24,000 locations, including 300 in New York and over 15 in the Hudson Valley.

Earlier this month, it was reported that Redbox, owned by Chicken Soup for the Soul Entertainment, had officially filed for bankruptcy protection. This move came after significant financial struggles, including an inability to meet payroll and pay employees’ health insurance.

Chicken Soup for the Soul Entertainment had initially filed for Chapter 11 bankruptcy, aiming to secure a loan that would help the company reorganize, meet payroll, and pay off debts to numerous retailers and big-name Hollywood studios like Universal, Sony, Lionsgate, and Warner Bros.

However, less than two weeks later, the company shifted its Chapter 11 bankruptcy case to a Chapter 7 liquidation case. This change means that the company was unable to develop a repayment plan for its debts and will now sell off its assets to pay back creditors. Consequently, all Redbox employees are expected to be laid off, and the company will close 24,000 kiosks nationwide, including 300 across New York State.

In the Hudson Valley, there are currently over 15 Redbox kiosks that will soon close if they haven’t already. These kiosks are located in areas such as Poughkeepsie, Newburgh, Kingston, LaGrangeville, Marlboro, Red Hook, Rhinebeck, Pine Bush, Middletown, Saugerties, Port Ewen, New Paltz, Highland, Greenwood Lake, Warwick, and Wappingers Falls, as per the Redbox website.

An anonymous company employee disclosed that a recent town hall meeting revealed that employees wouldn’t be paid for any hours worked so far this month. This raises concerns about when employees will be able to file for unemployment insurance.

According to Deadline, lawyers for Chicken Soup for the Soul informed the courts that they had worked tirelessly to find a solution to avoid this outcome.

Source: Deadline, WDTN