Redbox Entertainment April 1 disclosed it laid off 150 employees, or 10% of its workforce, due to the ongoing impact of the pandemic. The venerable home entertainment brand also informed the Securities and Exchange Commission that it would delay filing its 2021 annual fiscal report for the period ended Dec. 31, 2021.
Redbox said the staff cuts, which occurred March 29, would help decrease annual operating costs by approximately $13.1 million, and that it would incur a one-time restructuring charge of about $3.8 million, with the bulk due to related to severance costs.
As previously disclosed, Redbox, which became a publicly traded company last October, said its 2021 business encountered higher marketing and content expenditures without increased offsetting revenue.
Jan. 28 the company borrowed the remaining availability under its revolving credit facility, and management has been actively taking steps to decrease monthly costs, delay capital expenditures and increase revenue.
Redbox is also exploring a number of potential strategic alternatives with respect to its corporate or capital structure and seeking financing to fund operations and one-time restructuring costs. The company’s board has established a strategic review committee to, among other things, consider and oversee strategic alternatives or transactions that may be available with respect to its corporate or capital structure.
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Redbox, in the filing, said the strategic review process, and ongoing financing negotiations, have involved significant resources and have been a priority for management, diverting significant management time and internal resources away from reviewing and completing its financial statements.