Chicken Soup for the Soul Entertainment, Inc. Class A Stock News

As the stock market hits new highs in July, investors are riding a wave of optimism, closely tracking climbing indexes. Yet, beneath this bullish surface, some publicly traded companies are becoming bankruptcy risk stocks as they're grappling with the stark reality of financial distress.

Redbox parent Chicken Soup for the Soul Entertainment has shifted its bankruptcy filing from Chapter 11 to Chapter 7, meaning it will liquidate its business. The company, sagging under the weight of nearly $1 billion in debt and a tall stack of unpaid bills, filed for bankruptcy protection on June 29.

Employees of Redbox parent Chicken Soup for the Soul Entertainment are on track to resume getting their regular pay and benefits under a loan agreement given initial approval by a bankruptcy court judge. The roughly 1,000 workers at the company have gone without pay for at least two weeks, in some cases longer.

Another once-prominent company may soon be obsolete. Chicken Soup for the Soup Entertainment (NASDAQ: CSSE ) has officially filed for Chapter 11 bankruptcy protection as of yesterday, July 1.

NEW YORK — Chicken Soup for the Soul Entertainment, the parent of DVD rental operator Redbox, has filed for chapter 11 bankruptcy protection.

Chicken Soup for the Soul Entertainment has filed for Chapter 11 bankruptcy in Delaware, with nearly $1 billion in debt, two years after purchasing DVD rental company Redbox.

EXCLUSIVE: Chicken Soup for the Soul Entertainment, which filed for Chapter 11 bankruptcy protection on Saturday, has installed a new CEO and board of directors. Bart Schwartz, whose business career has not included any significant media or entertainment experience, is stepping in to replace Bill Rouhana as CEO.

The owner of Redbox has filed for bankruptcy after accumulating nearly $1 billion in debt.