Redbox, which went public last year through a SPAC, said it would lay off 150 employees, about 10% of its workforce. In an SEC filing, the company said “there are several potential strategic options related to the company’s corporate or capital structure.”
According to the filing, Kovid is responsible for the “ongoing adverse effects” of the system.
Originally known for its nationwide network of bright red kiosks, which still operate in thousands of retail locations such as grocery and convenience stores, the 20-year-old Redbox has expanded significantly. Drawing on the resources generated by the merger of Siport Global and subsequent IPOs in 2021, it has expanded its recently launched streaming operations. It has also joined hands with a production and acquisition called Redbox Entertainment, which initially wanted to make dozens of films titled Jenner. Last October, it signed a distribution deal with Lionsgate.
The retrenchment took effect March 29, according to multiple new SEC documents. The operation would reduce annual operating costs by about $ 13.1 million, but would also carry a one-time 3.8 million restructuring charge, mostly to cover separation.
The epidemic hit the redbox in 2021, with filing notes, and the company also saw an uptick in marketing and contextual costs related to its entertainment arm.
The agency has warned SEC regulators that its annual report will be delayed due to ongoing efforts to restructure and reduce costs. On January 28, the company tapped the latest available funds through its revolving credit facility. “Increased spending in the fourth quarter of 2021 is not offset by revenue growth,” the filing explicitly states.
Redbox said it was “actively taking steps to reduce monthly costs, delay capital expenditures and increase revenue.” It also “explores a number of potential strategic options related to the company’s corporate or capital structure and seeks to finance funding operations and one-time restructuring costs.”