Redbox Owner Chicken Soup Files For Bankruptcy
Written by Emily J. Thompson, Senior Investment Analyst
Source: Business Insider
- Chicken Soup for the Soul Entertainment Bankruptcy: The parent company of Redbox, Chicken Soup for the Soul Entertainment, filed for Chapter 11 protection in Delaware due to a debt of around $970 million.
- Debts Owed: The company owes millions to media companies like Universal Studios, Sony Pictures, and BBC Studios Americas, as well as retailers such as Walgreens and Walmart.
- Loan and Acquisition: Chicken Soup took a loan of over $300 million after acquiring Redbox in 2022 from Apollo Global Management.
- Struggles with Business Integration: Challenges arose when trying to merge the DVD rental business with free streaming services Crackle due to Hollywood strikes limiting new content production and decreased interest in physical DVD rentals.
- Financial Issues and Impact: The company faced financial difficulties, failed to secure additional funds, and struggled with insufficient cash flows, particularly in Redbox's kiosk rentals, impacting its ability to operate efficiently.
Analyst Views on WMT
Wall Street analysts forecast WMT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WMT is 121.92 USD with a low forecast of 108.00 USD and a high forecast of 130.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
26 Buy
0 Hold
0 Sell
Strong Buy
Current: 119.200
Low
108.00
Averages
121.92
High
130.00
Current: 119.200
Low
108.00
Averages
121.92
High
130.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
