Popular Movie Company Shutting Down 300 New York Locations

A big name in movies has announced that they are closing 24,000 locations including 300 in New York and 15+ in the Hudson Valley.

Earlier this month we told you the DVD movie rental company Redbox which is owned by Chicken Soup for the Soul Entertainment, had officially filed for bankruptcy protection after experiencing significant financial issues including being unable to meet payroll and an inability to pay employees health insurance.

Redbox Bankrupt?

At the time of filing Chicken Soup for the Soul Entertainment told its employees that they were filing for Chapter 11 bankruptcy in hopes of securing a certain type of loan that if approved would help the company reorganize and provide additional working capital to meet payroll and pay off some of the companies current debts to numerous retailers including Walmart and Walgreens, as well as some big-name Hollywood studios like Universal, Sony, Lionsgate, and Warner Bros.

Redbox Closing All Locations

Less than two weeks after filing the company changed its Chapter 11 bankruptcy case to a Chapter 7 liquidation case on Wednesday according to WDTN. The filing change signifies that the company wasn't able to come up with a repayment plan for its outstanding debts and will instead now start to sell off its assets to pay back creditors. The change will also mean that all of the Redbox employees are expected to be laid off and 24,000 of the company's kiosks nationwide will close including 300 across New York State.

Hudson Valley Redbox's Closing

Currently, there are 15+ Redbox kiosks across the Hudson Valley and if they haven't closed yet they will soon. Kiosks can be found in Poughkeepsie, Newburgh, Kingston LaGrangeville, Marlboro, Red Hook, Rhinebeck, Pine Bush, Middletown, Saugerties, Port Ewen, New Paltz, Highland, Greenwood Lake, Warwick, and Wappingers Falls, New York according to the Redbox website.

SEE ALSO: Target Stores Make Big Change to How Customers Checkout

An unidentified company employee told WDTN that employees at the company were told at a recent town hall meeting that they wouldn’t be getting paid for any of the hours they've worked so far this month. The filing change has also raised concerns about when employees would be able to file for unemployment insurance.

Lawyers for Chicken Soup for the Soul did tell the courts that they worked "day and night" to find a solution to avoid this outcome according to Deadline.