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A judge overseeing Redbox owner Chicken Soup for the Soul Entertainment\u2019s bankruptcy case granted a request Wednesday to convert it from Chapter 11 to Chapter 7 bankruptcy, according to Lowpass<\/em>\u2019 Janko Roettgers<\/a> and The Wall Street Journal<\/em><\/a>. The company\u2019s lawyers said Chicken Soup for the Soul Entertainment will lay off its remaining 1,000 employees and liquidate the businesses, including streaming operations and the 24,000 or so disc kiosks that have rented out DVDs, Blu-rays, and videogames for years.<\/p>\n<\/div>\n According to Roettgers, Judge Thomas Horan said, \u201cThere is no means to continue to pay employees, pay any bills, otherwise finance this case. It is hopelessly insolvent… Given the fact that there may also be at least the possibility of misappropriation of funds that were held in trust for employees, there is more than ample reason why this case should be converted.\u201d<\/p>\n<\/div>\n In addition to operating Redbox, Chicken Soup for the Soul Entertainment also manages brands like Crackle and Screen Media. (Note that Chicken Soup for the Soul Entertainment is a part of Chicken Soup for the Soul LLC<\/a>; the broader company isn\u2019t a part of this bankruptcy case, according to the WSJ<\/em>.) <\/p>\n<\/div>\n