Skip to content
CGMagazine
  • News
  • ArticlesExpand
    • Buyers Guides
    • Features
    • Interviews
    • Previews
    • Spotlight
    • The Vault
  • ReviewsExpand
    • Game Reviews
    • Comic Reviews
    • Anime Reviews
    • Book Reviews
    • Tabletop Reviews
    • Hardware Reviews
    • Music Reviews
    • Movie Reviews
    • TV Reviews
  • Guides
  • Magazine
  • MediaExpand
    • Podcasts
    • Video
    • Sound Off
    • First Fifteen
    • Weekly Goods
    • Video Interviews
    • Video Reviews
  • Store
  • Newswire
Facebook Twitter Instagram YouTube
CGMagazine
Loot Crate Files for Chapter 11 Bankruptcy, Agrees to Sell Itself

Loot Crate Files for Chapter 11 Bankruptcy, Agrees to Sell Itself

Company promises to ship remaining boxes

  • Preston Dozsa Preston Dozsa
  • August 13, 2019
  • 2 Minute Read

Loot Crate, the subscription box service known for monthly shipments of geek and gamer gear, has filed for Chapter 11 bankruptcy amidst plans to sell itself for cash.

The company filed for bankruptcy earlier this week, and released a statement overnight detailing that issues over the past year and a half have contributed to its poor financial state. The LA Times reported in 2017 that Loot Crate defaulted on a $21 million USD loan, which caused the company to lay off 25 percent of its staff at the time

“We have worked diligently to overcome challenges with our capital structure, along with legacy issues the Company has been struggling with for the past 18 months. We are very pleased with our progress from an operational efficiency standpoint, however, the company still faces liquidity issues,” Loot Crate’s Chief Executive Officer Chris Davis said in a press release. “After careful review of a wide range of available options, management determined that a sale of the Company is in the best interests of all parties, including our valued Looters (customers) and employees.”

Loot Crate, which has over 250,000 subscribers, plans to ship all remaining orders despite its financial troubles. According to Bloomberg, Loot Crate has been withholding customer billing in recent months, has yet to ship $20 million worth of goods, and owes $30 million in back taxes. The bankruptcy announcement comes after the company laid off 50 employees last week. In July, Loot Crate closed its warehouse and laid off 150 workers in California. There are currently 60 full-time employees within the company.

By declaring bankruptcy, the plan is for Loot Crate to sell itself to Loot Crate Acquisition LLC, an affiliate of existing investor Money Chest LLC. Money Chest is loaning Loot Crate $10 million in financing in order to both facilitate the sale and to keep operations afloat in the meantime. Once the sale is finalized later this week, Loot Crate expects it to be completed in 45 days, during which other companies may bid on its assets in accordance with US law.

Loot Crate was founded in 2012, and is the most well known subscription box service when it comes to geek gear. Contents of its boxes frequently include apparel, figurines, and other collectibles tied to popular culture.

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Preston Dozsa

Preston Dozsa

Like Harrison Ford in Blade Runner @KevinKnocke | Producer @SquadState Bylines @thescoreesports @IntotheSpine @CGMagonline @BDisgusting
All Articles

Must Read

Samsung Note 20 Ultra Review 18

Gaming on the Go: Talking Note 20 as Gaming Alternative

Samsung Reveals Galaxy S21 Lineup at Unpacked 2021 5

Samsung Reveals Galaxy S21 Lineup at Unpacked 2021

ASUS ROG Line Expands With RTX 30 Series and 11th Gen Intel CPUs 12

ASUS ROG Line Expands With RTX 30 Series and 11th Gen Intel CPUs

MORE FROM Preston Dozsa

Immortals Fenyx Rising (PC) Review 1

Immortals Fenyx Rising (PC) Review

Assassin’s Creed Valhalla Review 2

Assassin’s Creed Valhalla Review

Need For Speed Hot Pursuit Remastered Review

Need For Speed Hot Pursuit Remastered Review

Auto Draft 401

Crusader Kings III Review

CGMagazine Logo

Advertise with us
Jobs @ CGMagazine
© 2020 CGMagazine Publishing Group

Facebook
Twitter
Youtube
Linkedin
Instagram
  • Advertise
  • Contact
  • About Us
  • Policies
  • Jobs
  • Contests
  • CNW News
Menu
  • Advertise
  • Contact
  • About Us
  • Policies
  • Jobs
  • Contests
  • CNW News
  • News
  • Articles
    • Buyers Guides
    • Features
    • Interviews
    • Previews
    • Spotlight
    • The Vault
  • Reviews
    • Game Reviews
    • Comic Reviews
    • Anime Reviews
    • Book Reviews
    • Tabletop Reviews
    • Hardware Reviews
    • Music Reviews
    • Movie Reviews
    • TV Reviews
  • Guides
  • Magazine
  • Media
    • Podcasts
    • Video
    • Sound Off
    • First Fifteen
    • Weekly Goods
    • Video Interviews
    • Video Reviews
  • Store
  • Newswire
Search