Bankruptcy and liquidation
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.[16]
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.[17] In June 2024, chairman and CEO Bill Rouhana removed the company's board of directors.[18] 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.[19][20][21]
On July 1, 2024, former federal prosecutor Bart Schwartz replaced Rouhana as CEO, and a new board of directors was installed.[22] On July 5, the company was able to secure funding to restore payroll and benefits.[23]
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 would 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.[24][25]
On April 7, 2025, a bankruptcy auction was set for April 23.[26] CSSE's liquidation was completed by June 2025.
