Chicken Soup for the Soul Entertainment
Company type | Public |
---|---|
OTC PinkLimited:CSSEQ | |
Industry | Entertainment |
Founded | June 9, 2016[1] |
Founders | William J. Rouhana, Jr. |
Defunct | July 10, 2024 |
Fate | Chapter 7 bankruptcy liquidation |
Headquarters | Cos Cob,Connecticut,U.S. |
Area served | Worldwide |
Parent | Chicken Soup for the Soul |
Subsidiaries |
Chicken Soup for the Soul Entertainment, Inc.was an American media company based inCos Cob, Connecticut.Established in 2016,[1]it was a subsidiary of the publisherChicken Soup for the Soul.
History
[edit]In 2008, the founders ofChicken 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 withAlcon Entertainment.Chicken Soup for the Soul has produced television programming with other partners, includingPBS.[3]In 2016, Chicken Soup for the Soul acquired a majority stake in the websiteA Plus.[4]
Chicken Soup for the Soul Entertainment went public in 2017.[5]In November 2017, it acquiredScreen MediaVentures, LLC, an independent television and film distribution company, which includedPopcornflix,an ad-based online video service.[6][7]
On March 28, 2019, it was announced thatSony Pictures Televisionwould sell a majority stake ofSony Crackleto 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 ofSonar 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 theLaurel & Hardyfilms and shorts, and most of theOur Ganglibrary, as well as the holdings of the former RHI/Hallmark/Cabin Fever/Sonar outputs, and a majority of theHal Roachlibrary, all via theirHalcyon Studiosdivision.[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 acquireRedboxfor $357 million ($36 million in stock and $321 million in assumed debt).[15]The acquisition closed on August 11, 2022.[16]
Bankruptcy and liquidation
[edit]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 potentialChapter 11 bankruptcyprotection 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 aChapter 7 bankruptcyliquidation 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, includingCrackle,PopcornflixandRedbox.In addition, over 1,000 employees were laid off and over 26,000 Redbox kiosks were shut down permanently.[25][26]
References
[edit]- ^abChicken 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.RetrievedSeptember 6,2024.
- ^Milliot, Jim (February 2, 2009)."Serving Up a New Chicken Soup".Publishers Weekly.Archived fromthe originalon September 18, 2012.
- ^"Chicken Soup for the Soul: Food & Family – August 2014 on PBS".YouTube.July 3, 2014.Archivedfrom the original on March 6, 2019.RetrievedFebruary 23,2015.
- ^Spangler, Todd (January 2, 2019)."Ashton Kutcher Sells Stake in A Plus, His 'Positive Journalism' Site, for $2.7 Million in Stock".Variety.RetrievedJuly 7,2024.
- ^Sheetz, Michael (August 18, 2017)."Chicken Soup for the Soul stock debuts on Nasdaq after crowdsourced IPO".CNBC.RetrievedJune 22,2019.
- ^"Chicken Soup for the Soul Entertainment Completes Milestone Acquisition of Screen Media".GlobeNewswire News Room(Press release). November 6, 2017.RetrievedJuly 7,2024.
- ^"CHICKEN SOUP FOR THE SOUL ENTERTAINMENT'S RECENTLY ACQUIRED SCREEN MEDIA ASSETS APPRAISED AT OVER $31 MILLION".www.sec.gov.January 17, 2018.RetrievedJuly 7,2024.
- ^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.RetrievedNovember 12,2020.
- ^"Sony Sells Crackle Majority Stake to Chicken Soup for the Soul | Hollywood Reporter".The Hollywood Reporter.March 28, 2019.RetrievedNovember 12,2020.
- ^Grater, Tom (November 5, 2019)."Chicken Soup For The Soul Entertainment Acquires Mark Damon's Production & Sales Outfit Foresight Unlimited".Deadline.RetrievedDecember 4,2021.
- ^"Sony Trades Crackle Equity For Stock; Full Control Of Streamer Goes To Chicken Soup For The Soul Entertainment".Deadline.December 15, 2020.Archivedfrom the original on March 21, 2021.RetrievedDecember 15,2020.
- ^"Facts & Figures".chickensoup.com.September 16, 2013. Archived fromthe originalon December 14, 2013.RetrievedFebruary 23,2015.
- ^Whyte, Alexandra (April 9, 2021)."Chicken Soup acquires Sonar's assets".Kidscreen.
- ^Hayes, Dade (March 2, 2022)."Screen Media Parent Chicken Soup For The Soul Entertainment Acquires 1091 Pictures In $15.6M Indie Combo".Deadline.RetrievedMay 22,2022.
- ^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.
- ^Spangler, Todd (August 11, 2022)."Redbox Is Now Officially Part of Chicken Soup for the Soul Entertainment After $370 Million Deal Closes".Variety.RetrievedAugust 12,2022.
- ^Frankel, Daniel (April 1, 2024)."Chicken Soup For the Soul Receives Delisting Notification From Nasdaq".NextTV.RetrievedApril 23,2024.
- ^Frankel, Daniel (April 23, 2024)."Chicken Soup Reports $637 Million Loss for 2023, Preps Investors for Bankruptcy".NextTV.RetrievedApril 23,2024.
- ^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.RetrievedJuly 7,2024.
- ^Hayes, Dade (June 29, 2024)."Redbox Owner Chicken Soup For The Soul Entertainment Files For Chapter 11 Bankruptcy Protection".Deadline Hollywood.RetrievedJune 29,2024.
- ^O'Brient, Samuel (July 2, 2024)."CSSE Stock Alert: Chicken Soup for the Soul on the Brink of Death After Bankruptcy Filing".InvestorPlace.RetrievedJuly 7,2024.
- ^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.RetrievedJuly 7,2024.
- ^Hayes, Dade (July 1, 2024)."Bankrupt Redbox Parent Chicken Soup For The Soul Entertainment Installs New CEO And Board Of Directors".Deadline.RetrievedJuly 7,2024.
- ^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.RetrievedJuly 7,2024.
- ^Randles, Jonathan (July 10, 2024)."Redbox Owner to Be Liquidated Following Alleged Mismanagement".Bloomberg Law.RetrievedJuly 10,2024.
- ^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.RetrievedJuly 11,2024.
External links
[edit]- Business data for Chicken Soup for the Soul Entertainment, Inc.:
- 2016 establishments in Connecticut
- 2017 initial public offerings
- 2024 disestablishments in Connecticut
- American companies established in 1993
- American companies disestablished in 2024
- Book publishing companies based in Connecticut
- Companies based in Greenwich, Connecticut
- Companies formerly listed on the Nasdaq
- Companies that filed for Chapter 11 bankruptcy in 2024
- Companies that filed for Chapter 7 bankruptcy in 2024
- Companies traded over-the-counter in the United States
- Mass media companies established in 2016
- Mass media companies disestablished in 2024