Loot Crate files for bankruptcy, lays off over 50

Employees report no notice or severance despite promises that “operations will continue as usual”Subscription box service company Loot Crate has filed for bankruptcy, agreeing to be acquired following continued liquidity struggles over the last year and a half or longer.In a press release, CEO Chris Davis acknowledged that the company had been unable to recover…

Loot Crate files for bankruptcy, lays off over 50

Employees report no notice or severance despite promises that “operations will continue as usual”Subscription box service company Loot Crate has filed for bankruptcy, agreeing to be acquired following continued liquidity struggles over the last year and a half or longer.In a press release, CEO Chris Davis acknowledged that the company had been unable to recover from a string of past struggles over the last 18 months. But those seem to go back going back to at least 2016, when the company first laid off 12, then held layoffs again in 2017 before defaulting on a loan that it then refinanced in 2018 thanks to a $21 million term-loan. Most recently, 150 employees were laid off in July when Loot Crate closed a plant in Vernon, CA.At least one factor in these ongoing financial troubles appears to be the addition of more and more “themed” Loot Crates alongside its regular subscription service, the number and specificity of which quickly became unsustainable.Now, investor Money Chest LLC has purchased the company’s term-loan and offered up to $10 million in funding to keep operations running as planned. And according to Davis, that’s the plan.”We have worked diligently to overcome challenges with our capital structure, along with legacy issues the C
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