Loot Crate, known for its series of monthly subscription boxes containing exclusive collectibles, has filed for bankruptcy. The company has begun the process of Chapter 11 bankruptcy according to a press release, with a plan in place to sell the company. In the meantime, Money Chest (one of its investors) will be keeping things afloat for remaining employees.
In July 2019, Loot Crate closed its warehouse and laid off 150 of its employees, with the intent of outsourcing to a third party. An additional 50 employees were laid off in early August, leaving roughly 60 full-time employees with the company.
“Daily operations will continue as usual, unique and exciting fan items will be purchased, crates will be shipped, and all aspects of the business will go on as before the Chapter 11 filing. Our employees will continue to be paid as usual during this transaction,” Loot Crate co-founder Christopher Davis said in the press release.
According to the bankruptcy filing, Loot Crate currently owes $20 million worth of shipments to its customers. Many customers have claimed online that they have not received shipments or have received repeat items. Some customers may be left hanging if Loot Crate does not fulfill current orders; for example, customers who subscribed to the Fallout set in order to put together the Liberty Prime robot may be left without its head.