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.
wait they paid 325 millions in 2022 for Redbox???
Why???
How they thought they could have a return on that investment??!
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.