Redbox kiosks to go away; parent company changes from Chapter 11 to Chapter 7 WSOC TV [Video]

One of the last companies hanging on to the DVD rental business is going the way of Blockbuster and other rental places.

Chicken Soup for the Soul Entertainment has changed its original Chapter 11 bankruptcy filing to a Chapter 7 liquidation after lenders said they are not willing to risk putting money into the business any longer, The Wall Street Journal reported.

The company has almost $1 billion in debt to more than 500 creditors including, Walmart, Walgreens, Warner Bros. Home Entertainment and Sony Pictures Television, The Wall Street Journal reported last week when it filed for Chapter 11.

The move will see the layoff of all workers — about 1,000 employees —and the shutdown of both the Redbox streaming services and 24,000 DVD rental kiosks.

At one point there were 43,000 kiosks across the U.S. and Canada, according to Variety. They offered television shows, movies and video game rentals.

Judge Thomas Horan said he would grant the …