Loot Crate has taken significant steps toward financial health by reducing costs, capital expenditures and working capital needs, and looks forward to the benefits of new ownership. The Company expects the sale to be completed within 45 days. Bankruptcy Code, other companies will have an opportunity to submit competing offers for the assets. In accordance with Section 363 of the U.S. The terms of the agreement will be formalized and submitted to the Court later this week. To facilitate the transaction, Loot Crate and its affiliates today filed voluntary petitions for reorganization under Chapter 11 of the U.S. Loot Crate, the worldwide leader in fan subscription boxes, announced today that it has reached a definitive agreement for the sale of substantially all of its assets to Loot Crate Acquisition LLC. Team Loot CrateĪmazing how they manage not to use the word 'bankruptcy' once. Our goal is to fulfill the promises made to you, and we will be updating you with shipping and delivery dates as soon as we have them.įor information on the process and to answer some questions you might have, please see the FAQ below. Look for updates on deliveries soon.Īs you are a big part of our Looter family, you will be receiving more communications from us during the sale process. Our existing investor is providing us with up to $10 million in new financing which allows us to continue our daily operations and we intend to fulfill your subscriptions. The purpose of the chapter 11 filing is to facilitate the sale of the business and position the company to achieve the delivery times and customer experience you deserve. They know our company well – they have invested in Loot Crate in the past and have been a great partner.Īs part of the sale agreement, Loot Crate filed for chapter 11 reorganization. Our proposed buyer Loot Crate Acquisition LLC is an affiliate of an existing investor, Money Chest LLC who is providing us with immediate financial support. I am writing you with news – Loot Crate is being acquired. But not before they fired up to fifty staff without notice or severance pay, owing millions to vendors. And numbers dropped off a cliff.Īnd so, inevitably, Look Crate has entered Chapter 11 bankruptcy. Which downgraded the appeal of the boxes even further. And then sold shirts en masse to companies such as Ollie's Discount Outlets or Zavvi in the UK. And faced with not being able to get rid of excess stock, even at discounted prices, they started replacing new items in boxes with 'classic' items. Why risk $20 on a Loot Crate when you can wait a month and pick what you really want for $10? However, a combination of over order and production saw them cannibalise that exclusivity by selling the items individually at massive discount. They marketed themselves on exclusive items, with some that are genuinely hard to find now and valuable as a result. Built on subscriber growth, that number which neared half a million has halved over the last year or so. But as their competition went bust or ceased business, the market leader Loot Crate seemed to have less of a market to lead. Note that Walmart’s gift card selection updates often, so if you can’t find the gift card you want in a Walmart store, you can browse its full selection online.It spawned many competitors, even a few that are still surviving. Note: Prepaid cards come with a small fee, typically between $3 and $8.
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