Loot Crate files for bankruptcy, vows to ship boxes after layoffs
Despite filing for bankruptcy, and laying off more workers, Loot Crate has promised to ship its remaining boxes to customers.
Loot Crate, known for its monthly loot box subscription plans, has detailed plans to file for Chapter 11 bankruptcy following additional layoffs of dozens of workers, including 150 warehouse workers that were let go from the company last month.
The news comes via a press release that was sent out last night. In the press release, Loot Crate details its plans to file for the Chapter 11 Bankruptcy, as well as plans for how the company will continue in the future. According to the news, the company will be available for purchase with one of its investors, Money Chest, already promising a $10 million loan to help keep the company afloat throughout the bankruptcy. Loot Crate is expected to sell rather quickly, though no known offers have been made just yet.
The popular loot box company has been facing some financial troubles as of late. In fact, the LA Times reports that rumors dating back to 2017 indicate that the company has been heading downhill in the finance department for quite some time. This has all come to a head in the last few months, with Loot Crate shutting down its warehouse last month, effectively laying off 150 people. There have also been reports on Twitter the layoffs did not come with any type of severance or benefits, which could lead to even more backlash on the company in the future.
If you're currently subscribed to a Loot Crate subscription, then you're probably curious how this will affect you. According to the press release, things will continue on like normal for customers. However, we have already seen some reports of subscribers not receiving their Loot Crates for quite some time, which could mean that there are already additional issues that nobody is fully aware of at this time.
It's definitely a trying time for those who have called Loot Crate home for the past several years, and one that we wouldn't wish on employees anywhere. We'll continue to keep an eye on the situation and provide any additional information as it becomes available.
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replyJosh Hawkins posted a new article, Loot Crate files for bankruptcy, vows to ship boxes after layoffs
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I was expecting the Funko bubble to burst years ago, but it seems to be even stronger:
https://www.vox.com/the-goods/2019/8/13/20798910/funko-pop-vinyl-figurines-collectibles
Sales up 33% from 2018, CEO calls their business “recession-proof” and a new licensed figure can go from idea to finished product in like 50-51 days (and the company’s cost to create new designs is relatively low).
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