Home / Entertainment / Geek culture subscription box Loot Crate files for bankruptcy

Geek culture subscription box Loot Crate files for bankruptcy

The geek culture subscription box service, Loot Crate, which established an ecosystem in which pop culture fans were sent a surprise selection of merchandise each month, has filed for Chapter 11 bankruptcy.

According to a report from the LA Times, the service had hit a rough patch over the last year or so, in which it found itself short of funds, having failed to hit critical mass with its subscription box concept.

Founded in 2012, Loot Crate rose to popularity amid the rise of the geek culture. Monthly boxes were sent out to subscribers and featured a curated selection of products, spanning clothing, merchandise, figures, limited edition collectables and more.

Its early years traction seemingly trailed off latterly, putting the company is its current position of seeking a buyer to snap them up and start the rebuilding process. In that meantime, with  court declaration filed in Delaware, US, the company’s credit card processor is withholding customer billing.

Reports indicate that Loot Crate currently owes more than $30 million in trade debt, while the stemmed service and billing system has denied the company around $20 million in sales.

Prior to its August 12 bankruptcy filing, Loot Crate had axed around 50 jobs.

“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,” said Loot Crate’s chief executive officer, Chris Davis.

“We are very pleased with our progress from an operational efficiency standpoint, however, the company still faces liquidity issues.

“After careful review of the wide range of available options, management determined that a sale of the Company is in the best interest of all parties, including our valued Looters and employees.”

Davis insisted that daily operations will continue as usual throughout the process.

About Robert Hutchins

Robert Hutchins is the editor of Licensing.biz and ToyNews. Hutchins has worked his way up from Staff Writer to the position of Editor across the two titles, having spent some six years with both ToyNews and Licensing.biz, and what now seems like a lifetime surrounded by toys. You can contact him by emailing robert.hutchins@bizmedia.co.uk or calling him on 0203 143 8780 You can even follow him on Twitter @RobHutchins3 if ranting is your thing...

Check Also

Scotland’s Maramedia picks up rights to Michael Bond’s Olga da Polga

The Scottish children’s entertainment production company, Maramedia has acquired the rights to develop a new …