In what is sure to be looked upon as a sad day for gamers, sci-fi fans, comic-book collectors and everything in between, Loot Crate has filed for bankruptcy. The monthly subscription loot box that delivers a handful of geeky memorabilia to your front door is on its way out from the looks of things.
The Los Angeles company ships curated fan boxes filled with “geek and gamer products” to subscribers each month, Chief Restructuring Officer Stuart Kaufman said in a court declaration filed in Wilmington, Del. The contents include figurines, shirts, gear, gadgets and limited-edition collectibles tied to science fiction, gaming, sports and pop culture. They’re shipped to more than 250,000 recurring subscribers, court papers show.
But the company is now in dire financial straits. Its credit-card processor is withholding customer billings, Loot Crate hasn’t shipped goods tied to $20 million in sales, and the company owes more than $30 million in trade debt, Kaufman said. It’s also behind on more than $5.87 million in sales taxes.
The company dismissed about 50 people last week and now has about 60 full-time employees. It’s seeking to sell itself quickly during bankruptcy.
Damn. Hopefully, they at least get the owed product out to the loyal paying customers, some of which have had subscriptions for several years.
Terrible indeed, Obi-Wan.