Technology

59152 readers

2297 users here now

This is a most excellent place for technology news and articles.

Our Rules

Follow the lemmy.world rules.
Only tech related content.
Be excellent to each another!
Mod approved content bots can post up to 10 articles per day.
Threads asking for personal tech support may be deleted.
Politics threads may be removed.
No memes allowed as posts, OK to post as comments.
Only approved bots from the list below, to ask if your bot can be added please contact us.
Check for duplicates before posting, duplicates may be removed

Approved Bots

founded 1 year ago

MODERATORS

[email protected]

235

Redbox’s owner files for bankruptcy after repeatedly missing payments and payroll (www.theverge.com)

submitted 4 months ago by [email protected] to c/[email protected]

24 comments fedilink hide all child comments

informed employees of the filing late Friday [...] that it had filed for a debtor-in-possession loan — a way for companies that are reorganizing after filing for bankruptcy to secure additional working capital to meet payroll. [...] employees have been waiting for paychecks since June 21st [...] it’s not certain that the company will be able to secure such a loan.

Chicken Soup took on $325 million in debt when it acquired Redbox in 2022 and has since been sued over a dozen times over unpaid bills.

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 20 points 4 months ago (1 children)

Yet another example of leveraged buyouts being bad and dumb. The “risk” may be technically on the company you’re buying’s books but it’s really on the employees who actually face the real consequences of the bet failing.

[–] [email protected] 2 points 4 months ago

Without the buyout, the company would have failed even earlier. Doesn't help the employees either.