Chicken Soup for the Soul Entertainment

Chicken Soup for the Soul Entertainment, Inc.
	File:Chicken Soup for the Soul Entertainment.png
Company type	Public
Traded as	Template:OTC Expert
Industry	Entertainment
Founded	June 9, 2016; 10 years ago
Founders	William J. Rouhana, Jr.
Defunct	Template:End date and age
Fate	Chapter 7 bankruptcy liquidation
Headquarters	Cos Cob, Connecticut, U.S.
Area served	Worldwide
Parent	Chicken Soup for the Soul
Subsidiaries	Halcyon Studios; Screen Media; Foresight Unlimited; Crackle; 1091 Pictures; Redbox; Popcornflix;

Chicken Soup for the Soul Entertainment, Inc. was a U.S.-based media firm located in Cos Cob, Connecticut. Established in 2016, it functioned as a subsidiary under the publishing company Chicken Soup for the Soul.

History

In 2008, founders Jack Canfield and Mark Victor Hansen sold the Chicken Soup for the Soul brand to a consortium led by William J. Rouhana and Robert D. Jacobs.

By 2013, the enterprise had diversified into television and film production through collaborations with entities such as Alcon Entertainment and PBS. In 2016, it secured a controlling interest in the digital media platform A Plus.

The company went public in 2017 under the name Chicken Soup for the Soul Entertainment. That same year, it acquired Screen Media Ventures, LLC, a distributor specializing in film and television content that also operated the ad-supported streaming platform Popcornflix.

In 2019, it purchased a majority share of Sony Crackle from Sony Pictures Television and subsequently rebranded the service as Crackle. Later in that year, it expanded its Screen Media division by acquiring Foresight Unlimited, a foreign sales organization.

By December 2020, Chicken Soup for the Soul Entertainment had obtained full ownership of Crackle after Sony exchanged its remaining shares for equity stakes in the company. At this point, its content library comprised over 250 titles.

In April 2021, through its Halcyon Studios subsidiary, the company acquired Sonar Entertainment’s film and television catalog, gaining North American rights to classic collections including Laurel & Hardy and Our Gang.

On March 2, 2022, it further broadened its holdings by purchasing specialty film distributor 1091 Pictures for $15.55 million in a combination of cash and stock. This acquisition added roughly 4,000 titles along with several free ad-supported channels to its portfolio.

On May 11, 2022, Chicken Soup for the Soul Entertainment revealed plans to acquire Redbox in a deal valued at $357 million involving stock issuance and assumed debt; this transaction was finalized on August 11, 2022.

Bankruptcy and liquidation

On April 1, 2024, Nasdaq issued a delisting warning to Chicken Soup for the Soul Entertainment, granting them 180 days to rectify compliance issues. By April 23, 2024, the company disclosed a net loss of $636.6 million for fiscal year 2023 and cautioned that without additional funding it might face liquidation or Chapter 11 bankruptcy protection. In June 2024, CEO Bill Rouhana dismissed the board of directors. On June 29, following missed payrolls, reduced employee benefits, and failure to secure financing, the company filed for Chapter 11 bankruptcy.

On July 1, former federal prosecutor Bart Schwartz succeeded Rouhana as CEO and installed a new board. By July 5, financing was secured to reinstate payroll and employee benefits. Nevertheless, on July 10, a bankruptcy judge converted the case from Chapter 11 to Chapter 7 liquidation due to allegations of mismanagement attributed to Rouhana. This resulted in shutting down subsidiaries such as Crackle, Popcornflix, Redbox, and Screen Media; layoffs exceeding 1,000 staff; and permanent closure of over 26,000 Redbox kiosks.

As of April 2025, liquidation efforts continue with Crackle remaining as the only operational asset. A bankruptcy auction was scheduled for April 23 to dispose of remaining holdings.

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