CHICKEN SOUP FOR THE SOUL ENTERTAI
CSSE
Communication Services
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exclusion reason
1 theme
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Chicken Soup for the Soul Entertainment, parent of Redbox, filed for Chapter 11 bankruptcy in June 2024 with nearly $1 billion in debt, then converted to Chapter 7 liquidation in July 2024. Bankruptcy judge Thomas Horan determined there was "the possibility of misappropriation of funds that were held in trust for employees" and appointed a trustee to investigate. The company had failed to make payroll taxes for nine months, stopped paying employee health insurance for 2.5 months prior to filing, yet continued deducting health insurance contributions and 401(k) contributions from employee paychecks without remitting them. The company owes approximately $3.52 million in unpaid wages, $2.24 million in health and welfare benefits, and $594,204 in unremitted 401(k) contributions. Former CEO William Rouhana, who controlled roughly 80% of company shares, faces a lawsuit from 11 former employees alleging "greed at shocking levels" and Ponzi scheme-like conduct.
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A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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