Redbox parent Chicken Soup for the Soul Entertainment has shifted its bankruptcy filing from Chapter 11 to Chapter 7, meaning it will liquidate its business.
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NYC Restructuring Lawyer | Partner at Morrison Cohen LLP | Corp. Insolvency • Bankruptcy • Reorganization • Digital Assets | Helping Distressed Companies Regain Their Footing
Remember Chicken Soup for the Soul books—uplifting stories about being a better you? Well… They’re bankrupt. Specifically, the Connecticut company Chicken Soup for the Soul Entertainment, Inc. and several subsidiaries filed for chapter 11 bankruptcy relief in Delaware on Friday. Other big brands under the Chicken Soup parent are Redbox Entertainment Inc. and Crackle. Chicken Soup placed blame on the “repeated commercially unreasonable failures and refusals by their PrePetition Lenders [managed by HPS Investment Partners, LLC] … to live up to their obligations, resulting in asserted defaults and/or contractual terminations across critical content and service providers, thereby impacting [Chicken Soup’s] ability to procure and monetize content efficiently across their valuable distribution platforms.” HPS struck back, noting the PrePetition Lenders believe bankruptcy is “necessary because of the gross mismanagement and self-dealing of … the controlling shareholder, chairman of the board and former Chief Executive Officer” of Chicken Soup. This may be a bumpy ride—you can follow the docket for free at the claims agent’s (Kroll) website here: https://lnkd.in/eYcZSkwE.
Redbox Owner Chicken Soup For The Soul Entertainment Files For Chapter 11 Bankruptcy Protection
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KidKraft Files for Chapter 11 Bankruptcy Protection https://lnkd.in/ejP-PvJq KidKraft, a well-known company specializing in the production of children's furniture, toys, and playsets, has officially filed for Chapter 11 bankruptcy protection. This legal measure will allow the company to restructure its financial obligations and navigate through the challenging financial circumstances it currently faces. #kidkraft #bankruptcy #restructuring Global Retail Outlook Magazine
KidKraft Files for Chapter 11 Bankruptcy Protection
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Attorney and investor helping business and real estate owners grow their business and protect their most important assets.
Red Lobster just filed for bankruptcy protection. What does this mean for commercial landlords? The most important thing to understand is that while your lease terms are important, the Bankruptcy Code and Bankruptcy Court are in charge of the process. This means you should get a lawyer, have the lawyer file an appearance in the case, and you should get to work on filing a proof of claim. If you sit on your hands you may not like the result. The next most important thing to note is that once your tenant is in bankruptcy, you can’t take any actions against the tenant, including applying a security deposit, without the bankruptcy court’s approval. You can usually take actions against parties that have not filed bankruptcy, such as guarantors. During the process, the tenant will decide whether to assume, reject, or assign the lease. If the lease is assumed, the tenant will cure all defaults and begin paying rent again. If the lease is rejected, the lease will terminate and the landlord will have a claim as an unsecured creditor for any pre-bankruptcy rent. Usually this means you will collect at best pennies on the dollar. The tenant can also assign the lease, either by selling that specific lease or through a sale of all of its assets. The landlord can’t stop the assignment, but can insist on adequate assurances of performance to make sure the new tenant is creditworthy. However, the court can also modify some of the terms of the lease that make assignment harder, such as by providing relief from use clauses. If you have a Red Lobster or other bankrupt tenant in your portfolio (or are concerned that you will soon), please reach out if you would like to discuss. https://lnkd.in/dme2uwbK
Red Lobster files for Chapter 11 bankruptcy protection
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I help companies protect and max cash flow | More Success & Opportunity, Less Anxiety 😉Sales & Finance Are Cool #thetradecreditgirl
Even the children aren’t safe. Bankruptcy hurts for years. It’s not a quick sting. It’s a slow burn. Still reeling from the impact of the Toys R Us bankruptcy in 2018, Basic Fun, a toy company that brought us legendary toys like Care Bears, has filed for bankruptcy. There are hundreds of creditors on the hook and tens of millions locked up in the case. The company that has license partnerships with giants like Hasbro, Disney, Mattel, Nintendo, Netflix, Coca-Cola, Universal, Cloudco Entertainment, NFL, and NBA has now turned to bankruptcy for survival. This restructuring is intended to help the company continue into a new era of toy sales, but its always at someone’s expense. This means no payments until it’s your turn for unsecured creditors. That could have devastating implications for smaller businesses who rely on steady cash flow from what they likely perceived to be an industry giant. With household names involved like Care Bears, Tonka, Lite Brite, K’nex, Lincoln Logs, Tinker Toys, Playhut,and Fisher Price Classics, there’s undoubtedly some vendors shaking their heads right now. They likely never considered not being paid could be an issue with a well established buyer like this. Did you know there’s a means of protection for your AR from this very thing? I’d be happy to help you get some more information if you have buyers that you trust and are just curious to learn more.
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My latest article on Substack has a newsy feel. If you'd like to know what's been happening in the hop industry lately, please head over to Substack at the link below. If you find it valuable, I'd appreciate if you'd share it with somebody to spread the information. #hops #beer #surplus #Germany #bankruptcy https://lnkd.in/g93Azai3
Update: Bankruptcy, Quo-Vadis, Partnerships, Weather & Closures
mackinnonreport.substack.com
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Redbox Owner Chicken Soup For the Soul Files For Chapter 11 Bankruptcy Protection: Chicken Soup for the Soul Entertainment, the parent of DVD rental operator Redbox, has filed for Chapter 11 bankruptcy protection after months of financial struggles and piling unpaid bills. The Associated Press reports: Chicken Soup for the Soul has accumulated nearly $1 billion in debt, the Chapter 11 filing submitted Friday in Delaware bankruptcy court shows, after reporting loss after loss over recent quarters. The filing also discloses that Chicken Soup for the Soul owes millions to over 500 creditors -- which range from big names in the entertainment world like Sony Pictures and Warner Bros, to major retailers like Walgreens and Walmart. As of March of this year, Friday's filing shows, Chicken Soup for the Soul had about $414 million in assets and $970 million in debts. Shares for the public company have fallen more than 90% over the last year. "Redbox, founded in 2002, is best known for red-colored, self-serve machines that sit outside of pharmacies or groceries stores to rent or sell DVDs," notes the report. It was acquired by Chicken Soup for the Soul in 2022. There are currently about 27,000 Redbox kiosks across the U.S. -- down from 36,000 at the Redbox acquisition was finalized in August 2022. Read more of this story at Slashdot.
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Redbox Owner Chicken Soup For the Soul Files For Chapter 11 Bankruptcy Protection: Chicken Soup for the Soul Entertainment, the parent of DVD rental operator Redbox, has filed for Chapter 11 bankruptcy protection after months of financial struggles and piling unpaid bills. The Associated Press reports: Chicken Soup for the Soul has accumulated nearly $1 billion in debt, the Chapter 11 filing submitted Friday in Delaware bankruptcy court shows, after reporting loss after loss over recent quarters. The filing also discloses that Chicken Soup for the Soul owes millions to over 500 creditors -- which range from big names in the entertainment world like Sony Pictures and Warner Bros, to major retailers like Walgreens and Walmart. As of March of this year, Friday's filing shows, Chicken Soup for the Soul had about $414 million in assets and $970 million in debts. Shares for the public company have fallen more than 90% over the last year. "Redbox, founded in 2002, is best known for red-colored, self-serve machines that sit outside of pharmacies or groceries stores to rent or sell DVDs," notes the report. It was acquired by Chicken Soup for the Soul in 2022. There are currently about 27,000 Redbox kiosks across the U.S. -- down from 36,000 at the Redbox acquisition was finalized in August 2022. Read more of this story at Slashdot.
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UPDATE ON THE RITE AID BANKRUPTCY As expected, on October 15, Rite Aid filed for bankruptcy. It has already said that it will be closing 154 stores. If you are curious whether your local store has closed, just go on to the internet and type in “Rite Aid stores closing near me” or something similar. Interestingly, I always thought Rite Aid was a national drug store. It is not. Rather, it is primarily on the West Coast and in the Northeast. Since I grew up on the West Coast and now live in the Northeast, it is easy to see why I thought it was national. As of now, the company plans to restructure, rather than liquidate. The company has entered into what is known as a Restructuring Support Agreement (an “RSA”), which sets out the framework of what it will do moving forward. I was thinking about providing a synopsis of the RSA, but there is no way to do that in a short post. If you are REALLY curious, reach out to me and I will attempt to give you the “Reader’s Digest” version (for those of you old enough to understand the reference). One of the first motions filed is a motion for procedures to assume or reject the Company’s contracts. One of the more interesting aspects of any bankruptcy, is, when the company files, it becomes a “debtor-in-possession.” This is technically a new legal entity. One of the things the “debtor-in-possession” gets to do is to look at all of the contracts that the “pre-petition debtor” (yes, the same company) entered into and decides which ones it likes, which ones it doesn’t like and which ones it is not sure about. Those that it likes, it files a motion to assume, which makes those contracts obligations of the debtor-in-possession (these contracts can also be assigned, but that is a different discussion). Those that it doesn’t like, it rejects, so they are not obligations of the debtor-in-possession. Those that it is not sure about, it can wait to decide. Normally, the company has until the end of the case to decide. This makes sense, because the company does not want to act too quickly, as often the exit strategy isn’t fully developed. A lot of moving parts. I will post again to let you know how the case is proceeding.
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Redbox Owner Chicken Soup For the Soul Files For Chapter 11 Bankruptcy Protection: Chicken Soup for the Soul Entertainment, the parent of DVD rental operator Redbox, has filed for Chapter 11 bankruptcy protection after months of financial struggles and piling unpaid bills. The Associated Press reports: Chicken Soup for the Soul has accumulated nearly $1 billion in debt, the Chapter 11 filing submitted Friday in Delaware bankruptcy court shows, after reporting loss after loss over recent quarters. The filing also discloses that Chicken Soup for the Soul owes millions to over 500 creditors -- which range from big names in the entertainment world like Sony Pictures and Warner Bros, to major retailers like Walgreens and Walmart. As of March of this year, Friday's filing shows, Chicken Soup for the Soul had about $414 million in assets and $970 million in debts. Shares for the public company have fallen more than 90% over the last year. "Redbox, founded in 2002, is best known for red-colored, self-serve machines that sit outside of pharmacies or groceries stores to rent or sell DVDs," notes the report. It was acquired by Chicken Soup for the Soul in 2022. There are currently about 27,000 Redbox kiosks across the U.S. -- down from 36,000 at the Redbox acquisition was finalized in August 2022. Read more of this story at Slashdot.
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