Redbox Bankruptcy: The End of an Era

Redbox Bankruptcy: The End of an Era (From Chapter 11 to Chapter 7)

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Updated on November 17, 2025.

In this video, I provide an expert analysis of the recent Chapter 7 bankruptcy filing by Chicken Soup for the Soul Entertainment, the parent company of the once popular DVD rental kiosk, Redbox.

As a bankruptcy law professor, I followed the financial progression of Redbox, from its initial Chapter 11 reorganization to save the company from closure, to the irreversible conversion to Chapter 7 liquidation. By filing Chapter 7 bankruptcy, this is definitive end of the Redbox era.

Key Points Discussed:

• The Chapter 7 Conversion: I discuss what the conversion from Chapter 11 (reorganization) to Chapter 7 (liquidation) means for the Redbox brand, its creditors, and the remaining kiosks.
• A Case Study in Market Disruption: Redbox serves as a perfect modern case study in market disruption. While once a revolutionary, convenient, and affordable technology, its model was swiftly and completely eclipsed by the overwhelming consumer shift toward streaming services (e.g., Netflix and Amazon Prime).
• The Portable Blockbuster: Unfortunately, there are parallels between Redbox’s collapse and the bankruptcy of Blockbuster, highlighting the speed at which technology can render a successful business model obsolete.

The rapid disappearance of Redbox kiosks illustrates how fast consumer behavior and technological changes, and their economic impact.

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