(CNN) – Redbox, the DVD kiosk-rental business is shutting down after its parent company converted its bankruptcy to chapter 7 liquidation.
Chicken Soup for the Soul Entertainment, which owns Redbox, was nearly $1 billion in debt and owes millions of dollars to several entertainment companies.
Variety reports the company’s 1,000 employees are losing their jobs without any severance or extended benefits.
Chicken Soup for the Soul Entertainment failed to pay employees and vendors for at least four weeks prior to its chapter 11 filing last month.
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