Disaster Loot Crate Files for Bankruptcy and Lays Off Workers But Promises to Ship Remaining Boxes -

CatParty

Boo
True & Honest Fan
kiwifarms.net

Loot Crate was once the go-to company for monthly shipments of geek and gamer gear, but now its stock has run dry. The company is filing for bankruptcy and has laid off dozens of employees, on top of the 150 warehouse workers who were let go last month. Loot Crate plans to ship all remaining boxes to customers—but given how behind it already is, it seems like a tough promise to keep.
In a press release released overnight, Loot Crate announced plans to file for Chapter 11 bankruptcy. Reports of financial troubles have been circulating for awhile—including defaulting on a $21 million loan in 2017—even though Loot Crate has about 250,000 subscribers. The plan is to try and sell the company, with one of its investors, Money Chest (who will set the initial auction bid), funneling a $10 million bankruptcy loan to keep operations afloat in the interim.


The bankruptcy filing and overall financial woes have devastated the company’s workforce. Last month, Loot Crate closed its warehouse and laid off 150 workers, announcing plans to outsource to a third-party logistics company. An additional 50 employees were laid off last week, leaving the company with just 60 full-time workers. Reports have since surfaced on Twitter that employees were let go without any severance or benefits—something Toys “R” Us recently faced backlash for, resulting in a $20 million severance fund for its 30,000 former employees.
Co-founder Christopher Davis promised in the press release that Loot Crate subscribers should expect no changes. “Daily operations will continue as usual, unique and exciting fan items will be purchased, crates will be shipped, and all aspects of the business will go on as before the Chapter 11 filing. Our employees will continue to be paid as usual during this transaction,” he said. That’s a pretty hard sell, as it hasn’t been business as usual at Loot Crate.
According to the bankruptcy filing (as reported by the L.A. Times), the company has been withholding customer billing and still owes at least $20 million worth of shipments to customers. Some subscribers report not having received subscription boxes in the past three months. io9 Deputy Editor Jill Pantozzi, who receives a courtesy subscription for media, says the last shipment that arrived was the May “Nemesis” box. There have also been complaints of repeat items, lack of interesting exclusives, and boxes filled with disappointing goods.
Fallout 4 fans may end up feeling especially frustrated. If Loot Crate fails to fulfill all of its missing shipments, folks who subscribed to the six-part FalloutSeries 2 set (which costs about $228) in hopes of getting a complete Liberty Prime set...could end up never receiving its head.
 

sasazuka

Standing in the school hallway.
kiwifarms.net
"Bloody hell, are we still doing these?"


Ashens (Stuart Ashen) has pretty much replaced his near-monthly Loot Crate/other mystery box videos with videos of random items he ordered from Wish.com based on the top result for words he got via a word randomizer. The Wish.com videos are more interesting since they're not limited to the same dozen or so pop culture, nostalgia, and videogame franchises like Loot Crate.
 

Slamerella

If I won't do it, then who will?
kiwifarms.net
My bet is it was part of Think Geek, I got a years worth of boxes for free one time from them.
I bet you that even if they recovered, with the FTC and Lootboxes in gaming, it wouldn't last any longer. My shallow joke I made prior has some harsh truth.
How many YouTubers will follow in their bankruptcy?
Can't say I've seen them do a sponsor for anyone in a while, but I don't watch much people really. Besides, more YouTubers are looking towards personal care and more practical stuff for sponsorships.
How do you manage to fuck up charging weebs and nerds $25 every month for ~$3 worth of leftover shit that manufacturers don't want to pay to dump in a landfill or can't flog off on a dollar store?
The idea of it was novelty, but as time went on, and as a person who's looked into Lootcrate/Lootbox controversy, the worth of each crate would significantly diminish, and some crates didn't even get some of the merch promised. Also, the "lootcrate exclusives" were a big hit as people soon found out that most of them would be sold off, or just were NOT at all an exclusive. It was a very shady deal.
 

Dysnomia

Povertish
kiwifarms.net
Oh noooooo...no more overpriced geek garbage in a box...noooooo....

:story:
A lot of it is junk FYE has on clearance all the damn time anyway. So without good exclusives it's a total waste of money unless you built your whole Youtube career out of unboxing things. Then at least you can make fun of the trash and get views for that.

Fucking inflatable crown.👑
 

MembersSchoolPizza

Sworn Brother of the Cult of Browning
kiwifarms.net
There was always like one worthwhile item in a loot crate and when they started selling all their merchandise by the piece on discount thats when you could tell they were dead.
Even before that - I subscribed for a few months, back near the start. Then I realized that, yeah: There was always one item you liked, and you could go on ebay and buy it for less than the cost of the box.
 

neverendingmidi

it just goes on and on and on and on...
kiwifarms.net
I hope more subscription boxes die. I had a three month subscription as a gift that was from SaloonBox, and it was a nice gift, alcohol is always a good gift, but I found out from the last box that I despise gin. So 1/3 of the gift was useless. I'm glad the price of it kept me from signing up as it seems like every other month there's some form of gin drink in it now.

I can only imagine the problem is exacerbated with a generic "geek" box. You may be into Disney Star Wars/Marvel/Steven Universe but get a box full of World of Warcraft/Final Fantasy/Fortnite stuff that you aren't interested in. How many times are people willing to gamble on getting something they want vs. buying it directly?
 

Digital Thunder

Hard Drive Haunter
kiwifarms.net
Good. Chapter 7 when?
I can only imagine the problem is exacerbated with a generic "geek" box. You may be into Disney Star Wars/Marvel/Steven Universe but get a box full of World of Warcraft/Final Fantasy/Fortnite stuff that you aren't interested in. How many times are people willing to gamble on getting something they want vs. buying it directly?
This is more or less exactly what I don't get about the whole nerdy crate concept and why it held up for so long. Half the fun of getting collectibles is hunting them down and risking spending exorbitant amounts of money trying to get them in your hands, and through those means you're going for items you're actually after -- so why would anyone opt instead for a service that delivers a cheap pile of shit to you that guarantees neither quality nor items of interest? For kids? For cheapskates? Not even the "exclusives" seem worthwhile, so... Who?
 
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