Redbox and its tens of thousands of nostalgic movie rental kiosks are closing, marking the end of an era in physical media.
The streaming and video rental startup debuted in 2002 and peaked in 2013. It was most recognized for its bright-red touch-screen movie rental devices, which were found across the country at retailers like Walmart and CVS.
However, Redbox will shut down operations after its parent company, Chicken Soup for the Soul Entertainment, or CSSE, filed for Chapter 7 bankruptcy in Delaware bankruptcy court on Wednesday. Last month, CSSE filed for Chapter 11 bankruptcy protection, reporting nearly $1 billion in debt to several media businesses and retailers, including Sony Pictures Home Entertainment and Walgreens.
The bankruptcy also means that the company’s more than 1,000 employees will be laid off, the Wall Street Journal reported, amid other media reports that workers didn’t receive their paychecks and had medical benefits cut in late June. HPS Investment Partners, a lender for CSSE, alleged in court filings that the company was being grossly mismanaged.
The once-ubiquitous movie-rental service’s end is reminiscent of Blockbuster, the rental store chain that filed for bankruptcy protection in 2010 and closed almost all of its 9,000 stores as a result. Only one Blockbuster location remains, in Bend, Ore. CSSE and Redbox representatives didn’t immediately respond to requests for comment.
Netflix, before exploding in popularity as a streaming service, also started out in the DVD-rental game, mailing TV show and movie rentals in red envelopes to subscribers for 25 years before stopping the service last year.
Redbox’s website no longer shows its kiosk movie offerings — or its kiosk locations — but the company did leave consumers with a short message, posted on X a few days after the initial bankruptcy filing: “love you guys.”
