Galen Smith, who became executive vice chairman of Chicken Soup for the Soul Entertainment when it bought Redbox Entertainment in August, is resigning from the company, effective January 2.
Smith had been CEO of Redbox, which was trying to move into streaming to supplement its retail kiosk business.
Smith’s responsibilities will be assumed by Chicken Soup for the Soul chairman and CEO William J. Rouhana Jr.
“Mr. Smith has helped lead our integration of Redbox since the acquisition and has ensured the establishment of a clear path forward to best serve our consumers,” Chicken Soup for the Soul said in a filing with the Securities and Exchange Commission Friday. “Through January 2, 2023, Mr. Smith will work closely with our management and personnel to ensure a smooth transition.”
Under Smith, Redbox went public through a special purpose acquisition company deal in October 2021.
The company ran into trouble during the pandemic, which disrupted the pipeline of new movies that fed its DVD kiosk business. Revenue generated by the nascent streaming operations couldn't offset the declines in consumers visiting kiosks for what was a dwindling supply of fresh theatrical films at the time. Redbox losses doubled to nearly $141 million in 2021. ■
