Loot Crate Goes Bankrupt After Massive Layoffs

Loot Crate Geek Impulse

Loot Crate ships ‘geek and gamer’ boxes to monthly subscribers

This morning the subscription box service company Loot Crate filed for Chapter 11 Bankruptcy. We are surprised, but not so much. We looked to partner with this company and they were rude to us because at the time we were a startup. Either way, it is never good to see a business layoff people or have to shut down. Geek Fandom is a big business and it is unfortunate that one of the known brands in the space is failing, but they might be getting bought.

Chapter 11 bankruptcy happens when a company is hopeful about doing business in the future. It also allows for acknowledging that it cannot pay of its debts and assets and needs relief from them. Loot Crate hasn’t shipped goods tied to $20 million in sales and owes more than $30 million in trade debt, Kaufman said. It’s also behind on more than $5.87 million in sales taxes.

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.

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’s Chief Executive Officer Chris Davis

We hope that they are able to rebound. What are your thoughts on this news? How have they treated you? Do you know one of the employees that were laid off? Let us know in the comments. We want to hear from you. Be sure to follow us on social media and be sure to check out our podcast called “Dragon Spit Podcast.”

Founded in 2012, Loot Crate™, Inc. is the worldwide leader in fan subscription boxes. Loot Crate partners with industry leaders in entertainment, gaming, sports, and pop culture to deliver monthly themed crates, produce interactive experiences and digital content, and films original video productions. Since 2012, Loot Crate has delivered more than 32 million crates to fans in 35 territories across the globe.

Featured Image is by : Jason Hidalgo

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