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News

Loot Crate Files for Chapter 11 Bankruptcy

The Nerds August 13, 2019 73


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As an avid (and recently angry) Loot Crate subscriber, the past few months have been very frustrating. Loot Crate is currently 3 months behind in fulfilling crates (in my experience), and keeps pushing back more and more. This morning, we found out why via an email that was sent out to all current subscribers. We’ll copy it below.

Hey Looter,

I am writing you with news – Loot Crate is being acquired. 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.  They know our company well – they have invested in Loot Crate in the past and have been a great partner. 

As part of the sale agreement, Loot Crate filed for chapter 11 reorganization. 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. 

You, the Looters, are our top priority. 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. Look for updates on deliveries soon. 

As you are a big part of our Looter family, you will be receiving more communications from us during the sale process.  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. 

For information on the process and to answer some questions you might have, please see the FAQ below.  

We appreciate your continued support.
Team Loot Crate 



LOOTER QUESTIONS AND ANSWERS 

Why did Loot Crate file for chapter 11 protection? 

Loot Crate filed voluntary petitions under chapter 11 of the United States Bankruptcy Code to implement the sale of its business to Loot Crate Acquisition LLC, an affiliate of existing investor Money Chest LLC, while maintaining operations, continuing to ship goods and fulfill orders. 

What does this mean for my subscription? 

You do not need to do anything. Our buyer is providing us with new financing which allows us to continue our daily operations and our goal is to fulfill all of your subscriptions (past, present and future). Look for updates on deliveries soon. 

Do I need to do anything with my subscription? 

No. Your subscription is intact and you do not need to make any changes. 

I didn’t get a box like I was supposed to. Will it still come? 

Yes. You can expect updates on any past deliveries soon. Thanks for your patience while we sort things out. 

Does Loot Crate have enough money to run its business? 

We’ve got a commitment for up to $10 million in new financing from our existing investor, Money Chest LLC to support normal operations throughout the brief sale process. 

Does the filing impact shipping crates? 

Yes, but in a good way. With the new financing, we’re able to finish out crates that had not been shipped. Look for updates on deliveries. 

How long will Loot Crate be in chapter 11? 

We expect the sale process to be completed in 45 days. 

What are the filing details? 

Loot Crate, Inc., Loot Crate Holdings, Inc., LC Funding, Inc. and Loot Crate Parent, Inc. filed for chapter 11 protection on August 11, 2019 in Wilmington, Delaware. All the legal information can be found at https://cases.stretto.com/lootcrate. Toll free (877) 272-4403 or for international callers (949) 229-3562. 

There you have it. Loot Crate has officially filed for Chapter 11 bankruptcy BUT are being acquired as well with an investment of up to $10M until the sale is complete.

The new company’s name? Loot Crate Acquisition LLC… What an original name! AND it’s owned by Loot Crate’s current owner… something isn’t adding up for us here but we’ll give it the benefit of the doubt.

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