The company sells coffee nationally and operates cafes, but it has reached a crossroads due to its financial woes.

Unable to pay its debts which are nearly a billion total, Chicken Soup for the Soul Entertainment - owner of Redbox - files for bankruptcy.

The media company informed its employees of its filing on Saturday, which was filed with a Delaware bankruptcy court.

The pandemic is often blamed for a lot of distress that restaurants are still having. Many of these businesses have been forced to file for Chapter 11 bankruptcy to reorganize and restructure their debts, while others needed to take drastic action like filing Chapter 7 bankruptcy to close down and liquidate their assets.

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, which owns movie rental company Redbox and the streaming service Crackle, has entered bankruptcy on rocky footing, with its lenders moving on Monday to wrest control from the company's chief executive.

Chicken Soup for the Soul, which owns DVD rental chain Redbox, claimed $970 million in debts in their Chapter 11 filing. Those red DVD kiosks peppering Walgreens across the country may have reached their end.

The bankruptcy filing comes after months of a series of financial struggles for the company and piling unpaid bills.