Redbox, Crackle, And Other Chicken Soup For The Soul Entertainment Assets Set For Post-Bankruptcy Auction

Despite going bankrupt last year alongside its parent company, Chicken Soup for the Soul Entertainment, the trademarks and assets of Redbox will change hands in foreclosure sale.

Along with Redbox, another brand part of the deal is Crackle, an ad-supported streaming service launched and operated by Sony Pictures Entertainment 20 years ago. Hundreds of films controlled by Screen Media, a longtime specialty film label, will be included in the sale as well. Click here for the full list.

The auction will take place on April 23rd at 10 a.m. at the Hudson Yards offices of Milbank LLP in New York City. Chicken Soup Entertainment wound up in a Chapter 7 bankruptcy after investors decided to cut their losses with the company. Soon after, it liquidated, laying off over 1,000 employees with no severance or benefits, also idling over 24,000 Redbox kiosks.

Separate from the bankruptcy issues, employees are pursuing legal action against the former chairman and CEO of Chicken Soup for the Soul Entertainment, Bill Rouhana. Along with engineering the rash $375 million acquisition of Redbox, with most of the purchase price coming in debt form, Rouhana is accused by former workers of acting “in his own self-interest” and is alleged to have “deceived and manipulated the company” and the employees.

Auctions happen often when it comes to bankruptcies, but they are especially interesting in the entertainment business, for example, the meltdown of the Weinstein Co. following the accusations against Harvey Weinstein. The company’s assets were acquired out of bankruptcy in 2018 by Lantern Capital. Lantern was not a known name in entertainment circles until they teamed up with veteran production executive Gary Barber to launch Spyglass Media.