News

Investor bails Loot Crate out after company goes bankrupt

Investor bails Loot Crate out after company goes bankrupt

Nerd subscription box firm Loot Crate has filed for Chapter 11 voluntary bankruptcy in Delaware, with an investor stumping up cash to keep the company afloat in the aftermath.

Money Chest LLC has committed "up to $10m" in a bankruptcy loan to keep the firm operating, according to a press release, and has bought all of Loot Crate's assets via the newly-formed Loot Crate Acquisition LLC. 

Loot Crate has said that this cash, combined with existing revenue streams and cost-cutting should be enough to keep its head above water. Said cost-cutting includes 50 people losing their jobs last week, following the 150 Loot Crate employees whose roles were terminated in May of this year. 

Per reporting from the LA Times, Loot Crate's money woes have been on the horizon for some time. In 2017, the company defaulted in a loan from Breakwater Management, digging itself out of that hole by bringing in a... $21m load from Atalaya Capital. Money Chest has bought that loan in addition to the aforementioned $10m.

PCGamesInsider.biz has the full story.


Editor - PC Games Insider

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he was hired to launch PCGamesInsider.biz for Steel Media before departing the firm in October 2019.

He has also written for GamesIndustry.biz, VGC, Games London, The Observer/Guardian and Esquire UK.

Comments

No comments
View options
  • Order by latest to oldest
  • Order by oldest to latest
  • Show all replies