Loot Crate, The Curated Pop Culture Subscription Service, Has Filed For Bankruptcy
It has filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.
Loot Crate, the subscription service that sends its subscribers curated boxes every month full of items relating to various pop culture franchises, has filed for bankruptcy and let go much of its work force. Although the website and store is still up, Loot Box is now on the market for acquisition. It is expected to finalise a sale within the next 45 days.
As Gizmodo reports, last month the company let go 150 of its warehouse workers, and dozens of other workers have been let go this week. Loot Crate has received a commitment from Money Chest LLC for more funding of up to $10 million, which will allow the company to keep operating for now. According to the press release the company put out about their situation, "employees and customers should not notice any difference in operations as a result of the filing or during the sale process except for the better."
However, some customers have reported not receiving new boxes from Loot Crate for months - responses to the company's tweet about their bankruptcy point towards customers who are as many as seven boxes behind on their subscriptions. Former senior community manager Shawnee Hale has tweeted out that those let go did not receive severance pay, either.
They were laid-off with no severance and no warning while #LootCrate released a press released that they were filing for bankruptcy while also insisting the employees would be fine. If any of you have any openings for AMAZING brand managers, designers, project managers [pt2]— Godzilla's Mom (@AgentShawnee) August 13, 2019
Whether Loot Crate will be able to continue operating into the future, and how it will fulfill its existing obligations to subscribers, remains unclear. According to the LA Times, they currently owe about $20 million worth of unshipped crates.
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