Popular geek toy distributor Loot Crate files for bankruptcy Loot Crate via ShopifyLoot Crate has filed for Chapter 11 bankruptcy according to a report from the LA Times. The popular nerd culture company has found itself short on funds after years of attempting to reach critical mass with its subscription boxes. The company was founded in 2012 and quickly rose to popularity among fans of all things geek and gaming culture. Its boxes included everything from clothing, merchandise, figures, limited-edition collectibles, and so much more. While the company did manage to gain some traction in its early years with an easy way for fans to get merch from their favorite games and shows, the company is finding itself in a troubling predicament as it looks for someone to step up and buy them to start the rebuilding process. Loot Crate\u2019s Chief Restructuring Officer Stuart Kaufman sponsored the court declaration filed in Wilmington, Delaware and said that the company\u2019s credit-card processor is withholding customer billing. This resulted in Loot Crate not shipping goods that make up about $20 million in sales. The company owes more than $30 million in trade debt, and still haven\u2019t caught up in over $5 million in sales tax, per the L.A. Times report. The Los Angeles-based company has been taking steps to get back on better financial footing that saw around 50 employees let go in the week prior to their August 12 bankruptcy filing. \u201cWe 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,\u201d Loot Crate\u2019s Chief Executive Officer Chris Davis said in a press release. \u201cWe are very pleased with our progress from an operational efficiency standpoint, however, the company still faces liquidity issues.\u201d While company heads have been exhausting their options to stay afloat, it seems like the tough decision to sell was the best route to take with all parties in mind. \u201cAfter careful review of a wide range of available options, management determined that a sale of the Company is in the best interests of all parties, including our valued Looters (customers) and employees,\u201d Davis said. The CEO ensured that \u201cdaily operations will continue as usual\u201d while they maneuver through the Chaper 11 filling to find a solution to their difficulties as soon as possible.<\/p>\n","protected":false},"excerpt":{"rendered":"
Popular geek toy distributor Loot Crate files for bankruptcy Loot Crate via ShopifyLoot Crate has filed for Chapter 11 bankruptcy according to a report from the LA Times. The popular nerd culture company has found itself short on funds after years of attempting to reach critical mass with its subscription boxes. The company was founded […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-86905","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/posts\/86905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/comments?post=86905"}],"version-history":[{"count":0,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/posts\/86905\/revisions"}],"wp:attachment":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/media?parent=86905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/categories?post=86905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/tags?post=86905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}