Technology

59374 readers

3846 users here now

This is a most excellent place for technology news and articles.

Our Rules

Follow the lemmy.world rules.
Only tech related content.
Be excellent to each another!
Mod approved content bots can post up to 10 articles per day.
Threads asking for personal tech support may be deleted.
Politics threads may be removed.
No memes allowed as posts, OK to post as comments.
Only approved bots from the list below, to ask if your bot can be added please contact us.
Check for duplicates before posting, duplicates may be removed

Approved Bots

founded 1 year ago

MODERATORS

[email protected]

236

Redbox’s owner files for bankruptcy after repeatedly missing payments and payroll (www.theverge.com)

submitted 4 months ago by [email protected] to c/[email protected]

24 comments fedilink hide all child comments

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.

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 52 points 4 months ago (1 children)

I don't doubt that rental companies have been squeezed harder and harder on licensing costs specifically to drive them out so the publisher-owned services take over

[–] [email protected] 16 points 4 months ago (1 children)

I'm not sure that was much of an issue for DVD. Historically VHS had those huge licensing terms for new releases ($90 for VHS), but the same rules didn't apply to DVD (new releases $20). This was one of the main reasons VHS rentals died so fast after DVDs came out.

Also at least at one time, I remember Redbox was simply buying DVDs at retail stores instead of buying from retail stores for their disc inventory. I see that Walmart is listed as a creditor. That makes me think perhaps Redbox still was.

[–] [email protected] 20 points 4 months ago (1 children)

I'd wager walmart is listed because they weren't paying their floor rent for all the redboxes they have at walmarts, not that they were buying DVDs there.

[–] [email protected] 5 points 4 months ago

Thats a very good point.