Screentime
Redbox Owner to Be Liquidated Following Alleged Mismanagement
- Bankruptcy judge orders company into Chapter 7 liquidation
- Redbox owner didn’t fund employee health care, lawyers said
The bankrupt owner of Redbox Entertainment Inc. will be liquidated, a judge ruled Wednesday, after lawyers for the company and lenders accused its former chief executive officer of mismanaging the business and failing to pay workers or fund their health benefits.
Judge Thomas Horan said during a Delaware court hearing that Redbox’s publicly traded owner, Chicken Soup for the Soul Entertainment Inc., will be shut down by an independent trustee after an earlier effort by the company to borrow fresh funds to pay employees failed. About 1,000 workers will be laid off.