Chicken Soup for the Soul Entertainment, known for its uplifting books and diverse media ventures, including Redbox, has been dealing with significant financial challenges. Despite its optimistic ethos, positive thinking wasn’t enough to keep the company from filing for Chapter 11 bankruptcy protection last week in Delaware.

As reported by CBS news, the company had extensive debts nearing $1 billion owed to over 500 creditors, including major entertainment firms and retailers.

The company’s financial struggles reflect its ambitious expansion beyond publishing. Founded in 1993 by motivational speakers Jack Canfield and Mark Victor Hansen, their debut book, “Chicken Soup for the Soul”, was a compilation of inspirational, true stories,  that resonated deeply with audiences. This success spawned numerous titles tailored to specific demographics, such as ‘Chicken Soup for the Teenage Soul,’ a best-seller upon its 1997 release.

In the early 2000s, the company diversified into advertisement-supported video-on-demand services, including Crackle and Popcornflix, as reported by Business Insider.

However, despite substantial revenue growth following its 2017 IPO, highlighted by the acquisition of Redbox, the company has faced mounting losses and declining stock value, raising doubts over the last few years about its future viability.

The signs that this move was coming were crystal clear. Earlier in June, Chicken Soup for the Soul Entertainment dropped its entire board of directors except one, chairman and CEO Bill Rouhana.