Chicken Soup for the Soul Entertainment (NASDAQ:CSSE) stock is falling hard on Monday after the Redbox parent company announced a Chapter 11 bankruptcy filing.
The filing reveals that Chicken Soup for the Soul Entertainment is struggling with massive amounts of debt higher than $1 billion. On top of that, the company still owes plenty of money to its partners. That includes retailers, such as Walmart (NYSE:WMT) and Walgreens (NASDAQ:WBA), as well as entertainment companies BBC and Sony (NYSE:SONY).
Investors will note that this bankruptcy filing specifically focuses on Chicken Soup for the Soul Entertainment’s Redbox media division. It doesn’t cover the part of the company that handles its book publishing business.
Other Troubles for CSSE Stock
This bankruptcy filing follows reports that Redbox is late on paying employees. News of this was reported last week alongside the company cutting medical benefits. These were the first signs that things weren’t right at Chicken Soup for the Soul Entertainment.
The fall of Chicken Soup for the Soul Entertainment comes after its purchase of Redbox for $325 million in 2022. There were plans for a major streaming launch but that never panned out. On top of that, DVD rental sales have been in steady decline, reports CNN.
It’s also worth noting that CSSE shares were already in danger of being delisted. That’s likely going to get an update in the coming days with confirmation of its shares leaving the Nasdaq Exchange.
CSSE stock is down 29.4% as of Monday morning.
Investors will want to stick around for more of the most recent stock market news!
We have all of the latest market happenings worth reading about on Monday! That includes all of the latest news for shares of Delta Apparel (NYSEMKT:DLA) stock, Chewy (NYSE:CHWY) stock and Loop Media (NYSEMKT:LPTV) stock today. You can read up on all of this news at the links below!
More Stock Market News for Monday
- Why Is Delta Apparel (DLA) Stock Down 34% Today?
- Why Is Chewy (CHWY) Stock Up 12% Today?
- Why Is Loop Media (LPTV) Stock Up 69% Today?
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
