Sherwood: “Ever wanted to own 46 copies of Orlando Bloom’s latest movie? What about a dozen empty Redbox DVD cases? Or maybe an entire Redbox kiosk, free with local pickup? It’s all up for grabs, thanks to Redbox’s recent demise. The chain of DVD-rental kiosks filed for bankruptcy in June after racking up close to a billion dollars in debt. The bankruptcy case was quickly converted to Chapter 7, legal speak for the end of the road for a corporation that has no options left to restructure or recover. “There is no means to continue to pay employees, pay any bills, or otherwise finance this case,” bankruptcy Judge Thomas Horan said, calling Redbox and its corporate parent “hopelessly insolvent.” In a typical Chapter 7 bankruptcy case, a company’s assets get sold off to the highest bidders, and the resulting money gets divided among creditors. But after a dizzying company collapse with legal disputes swirling, Redbox’s afterlife is anything but ordinary. Grocery chains are hauling its once ubiquitous red kiosks to the dump, workers who never got their last paychecks are hawking DVDs on eBay, and customers are trading tips online on how to trick any remaining rental machines into spitting out movies without having to pay for them. It’s a free-for-all, albeit with some significant risks: not only could customers get dinged for any unpaid late charges, but improperly disposed of kiosks could put the personal data of countless consumers at risk…”
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