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Chicken Soup for the Soul Entertainment

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Chicken Soup for the Soul Entertainment, Inc.
Company typePublic
OTC Pink Limited: CSSEQ
IndustryEntertainment
FoundedJune 9, 2016; 8 years ago (2016-06-09)[1]
FoundersWilliam J. Rouhana, Jr.
DefunctJuly 10, 2024; 4 months ago (2024-07-10)
FateChapter 7 bankruptcy liquidation
Headquarters
Cos Cob, Connecticut, U.S.
Area served
Worldwide
ParentChicken Soup for the Soul
Subsidiaries

Chicken Soup for the Soul Entertainment, Inc. was an American media company based in Cos Cob, Connecticut. Established in 2016,[1] it was a subsidiary of the publisher Chicken Soup for the Soul.

History

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In 2008, the founders of Chicken Soup for the Soul, Jack Canfield and Mark Victor Hansen, sold the company to a new ownership group led by William J. Rouhana and Robert D. Jacobs.[2]

In 2013, the company announced plans to produce a television series and a film with Alcon Entertainment. Chicken Soup for the Soul has produced television programming with other partners, including PBS.[3] In 2016, Chicken Soup for the Soul acquired a majority stake in the website A Plus.[4]

Chicken Soup for the Soul Entertainment went public in 2017.[5] In November 2017, it acquired Screen Media Ventures, LLC, an independent television and film distribution company, which included Popcornflix, an ad-based online video service.[6][7]

On March 28, 2019, it was announced that Sony Pictures Television would sell a majority stake of Sony Crackle to Chicken Soup for the Soul Entertainment, after which the service would revert to the "Crackle" name.[8][9]

On November 5, 2019, it was announced that the Chicken Soup for the Soul Entertainment division would purchase foreign sales company Foresight Unlimited for the new Screen Media division.[10]

On December 15, 2020, Sony traded its remaining shares in Crackle for a yet to be disclosed preferential stake in Chicken Soup for the Soul Entertainment, giving them full control of the ad-supported streaming service.[11] As of 2020, the Chicken Soup for the Soul series included more than 250 titles.[12]

In April 2021, Chicken Soup for the Soul acquired the film and television catalogue of Sonar Entertainment. In return, Sonar will hold a 5 percent stake in a new AVOD network featuring its library.[13] Through the acquisition, Chicken Soup now currently owns the North American rights to a majority of the Laurel & Hardy films and shorts, and most of the Our Gang library, as well as the holdings of the former RHI/Hallmark/Cabin Fever/Sonar outputs, and a majority of the Hal Roach library, all via their Halcyon Studios division.[citation needed]

On March 2, 2022, Chicken Soup for the Soul Entertainment announced its acquisition of specialty film distributor, 1091 Pictures, for $15.55 million, in a mix of cash ($8 million) and stock (newly issued Series A preferred stock and Class A common stock). The deal included an estimated 4,000 movies and TV series from the 1091 catalog, as well as its portfolio of free, ad-supported networks and channels.[14]

On May 11, 2022, Chicken Soup for the Soul Entertainment announced its intention to acquire Redbox for $357 million ($36 million in stock and $321 million in assumed debt).[15] The acquisition closed on August 11, 2022.[16]

Bankruptcy and liquidation

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On April 1, 2024, Chicken Soup for the Soul Entertainment received a delisting notice from Nasdaq, informing that the company's stock would be delisted from the Nasdaq after it had 180 days to return to compliance.[17]

On April 23, 2024, Chicken Soup for the Soul Entertainment announced a $636.6 million loss in 2023, and warned that without any options to generate additional financing, the company may be forced to liquidate or pause operations, and seek a potential Chapter 11 bankruptcy protection filing.[18] In June 2024, chairman and CEO Bill Rouhana removed the company's board of directors.[19] On June 29, the company filed for Chapter 11 bankruptcy protection after cutting benefits in May, missing a week of paying its employees, and failing to secure financing.[20][21][22]

On July 1, 2024, former federal prosecutor Bart Schwartz replaced Rouhana as CEO, and a new board of directors was installed.[23] On July 5, the company was able to secure funding to restore payroll and benefits.[24]

On July 10, 2024, a bankruptcy judge ordered Chicken Soup for the Soul Entertainment's Chapter 11 bankruptcy to be converted into a Chapter 7 bankruptcy liquidation after accusing Rouhana of misusing the business and failing to pay employees or support healthcare. With the Chapter 7 conversion, the company's assets will be liquidated, resulting in the cessation of its subsidiaries, including Crackle, Popcornflix, Redbox and Screen Media. In addition, over 1,000 employees were laid off and over 26,000 Redbox kiosks were shut down permanently.[25][26]

References

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  1. ^ a b Chicken Soup for the Soul (June 9, 2016). "Chicken Soup for the Soul Announces Formation of Chicken Soup for the Soul Entertainment, Inc" (Press release). Business Wire. Retrieved September 6, 2024.
  2. ^ Milliot, Jim (February 2, 2009). "Serving Up a New Chicken Soup". Publishers Weekly. Archived from the original on September 18, 2012.
  3. ^ "Chicken Soup for the Soul: Food & Family – August 2014 on PBS". YouTube. July 3, 2014. Archived from the original on March 6, 2019. Retrieved February 23, 2015.
  4. ^ Spangler, Todd (January 2, 2019). "Ashton Kutcher Sells Stake in A Plus, His 'Positive Journalism' Site, for $2.7 Million in Stock". Variety. Retrieved July 7, 2024.
  5. ^ Sheetz, Michael (August 18, 2017). "Chicken Soup for the Soul stock debuts on Nasdaq after crowdsourced IPO". CNBC. Retrieved June 22, 2019.
  6. ^ "Chicken Soup for the Soul Entertainment Completes Milestone Acquisition of Screen Media". GlobeNewswire News Room (Press release). November 6, 2017. Retrieved July 7, 2024.
  7. ^ "CHICKEN SOUP FOR THE SOUL ENTERTAINMENT'S RECENTLY ACQUIRED SCREEN MEDIA ASSETS APPRAISED AT OVER $31 MILLION". www.sec.gov. January 17, 2018. Retrieved July 7, 2024.
  8. ^ Hayes, Dade (March 28, 2019). "Sony Crackle Gets Reboot Via Chicken Soup For The Soul Joint Venture; Eric Berger To Depart After Deal Close". Deadline. Retrieved November 12, 2020.
  9. ^ "Sony Sells Crackle Majority Stake to Chicken Soup for the Soul | Hollywood Reporter". The Hollywood Reporter. March 28, 2019. Retrieved November 12, 2020.
  10. ^ Grater, Tom (November 5, 2019). "Chicken Soup For The Soul Entertainment Acquires Mark Damon's Production & Sales Outfit Foresight Unlimited". Deadline. Retrieved December 4, 2021.
  11. ^ "Sony Trades Crackle Equity For Stock; Full Control Of Streamer Goes To Chicken Soup For The Soul Entertainment". Deadline. December 15, 2020. Archived from the original on March 21, 2021. Retrieved December 15, 2020.
  12. ^ "Facts & Figures". chickensoup.com. September 16, 2013. Archived from the original on December 14, 2013. Retrieved February 23, 2015.
  13. ^ Whyte, Alexandra (April 9, 2021). "Chicken Soup acquires Sonar's assets". Kidscreen.
  14. ^ Hayes, Dade (March 2, 2022). "Screen Media Parent Chicken Soup For The Soul Entertainment Acquires 1091 Pictures In $15.6M Indie Combo". Deadline. Retrieved May 22, 2022.
  15. ^ Hayes, Dade (May 11, 2022). "Redbox To Be Acquired By Crackle Parent Chicken Soup For The Soul Entertainment In All-Stock Deal Focused On Value End Of Streaming Market". Deadline Hollywood.
  16. ^ Spangler, Todd (August 11, 2022). "Redbox Is Now Officially Part of Chicken Soup for the Soul Entertainment After $370 Million Deal Closes". Variety. Retrieved August 12, 2022.
  17. ^ Frankel, Daniel (April 1, 2024). "Chicken Soup For the Soul Receives Delisting Notification From Nasdaq". NextTV. Retrieved April 23, 2024.
  18. ^ Frankel, Daniel (April 23, 2024). "Chicken Soup Reports $637 Million Loss for 2023, Preps Investors for Bankruptcy". NextTV. Retrieved April 23, 2024.
  19. ^ Hayes, Dade (June 18, 2024). "Ailing Redbox Owner Chicken Soup For The Soul Entertainment Removes Entire Board Of Directors Except For Chairman And CEO Bill Rouhana". Deadline. Retrieved July 7, 2024.
  20. ^ Hayes, Dade (June 29, 2024). "Redbox Owner Chicken Soup For The Soul Entertainment Files For Chapter 11 Bankruptcy Protection". Deadline Hollywood. Retrieved June 29, 2024.
  21. ^ O'Brient, Samuel (July 2, 2024). "CSSE Stock Alert: Chicken Soup for the Soul on the Brink of Death After Bankruptcy Filing". InvestorPlace. Retrieved July 7, 2024.
  22. ^ Hayes, Dade (June 26, 2024). "Troubled Redbox Parent Chicken Soup For The Soul Entertainment Is Nearly A Week Late Paying Employees; Medical Benefits Also Cut". Deadline. Retrieved July 7, 2024.
  23. ^ Hayes, Dade (July 1, 2024). "Bankrupt Redbox Parent Chicken Soup For The Soul Entertainment Installs New CEO And Board Of Directors". Deadline. Retrieved July 7, 2024.
  24. ^ Hayes, Dade (July 5, 2024). "Bankrupt Redbox Parent Chicken Soup For The Soul Entertainment Gets Judge's Preliminary OK For Plan Restoring Employee Pay And Benefits". Deadline. Retrieved July 7, 2024.
  25. ^ Randles, Jonathan (July 10, 2024). "Redbox Owner to Be Liquidated Following Alleged Mismanagement". Bloomberg Law. Retrieved July 10, 2024.
  26. ^ Hayes, Dade (July 10, 2024). "Redbox Owner Chicken Soup For The Soul To Liquidate In Chapter 7 Bankruptcy Shift; Workforce Of 1,000 To Be Let Go And 24,000 Kiosks Shut Down, Lawyer Says". Deadline. Retrieved July 11, 2024.
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  • Business data for Chicken Soup for the Soul Entertainment, Inc.:
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