FYI – Loot Crate Subscription Update


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FYI –  Loot Crate is being acquired and has released information on their current status. For information on their shipping delays, check here.

From Loot Crate:

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.

We will continue to post subscription updates and shipping updates as we hear about them. Please let us know if we’re missing any information.

How do subscribers rate Loot Crate?

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Do you subscribe to Loot Crate? Add your rating now!


Written by MSA

MSA

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Posted in Deadpool Club Merc Crate News, Fallout Crate News, Firefly Cargo Crate News, Halo Legendary Crate News, J.K. Rowling's Wizarding World Crate News, Loot Crate News, Loot for Her by Loot Crate News, Loot Socks by Loot Crate News, Loot Undies by Loot Crate News, Loot Wearables by Loot Crate News, Sanrio Small Gift Crate News, Star Trek Mission Crate News, Subscription Box News, The Rick and Morty Crate News, WWE Slam Crate News| Tags: loot crate | 33 comments

33 Comments

  1. at one point i was subscribed to 12 boxes of theirs. glad i stopped at the beginning of the year (march). i do have a sanrio crate yet to come but cancelled before they could charge me for the next

    you ever wonder why companies like the bam box have just two boxes not thirty. things are easier to maintain with two rather than thirty

  2. Woo hoo!! I’m so glad I demanded refunds for my four lootwear subs two weeks ago!! I actually got the refunds! And a random pair of undies arrived last week! Good bye loot crate!

  3. I wouldn’t expect any new crates or merchandise from this point forward. 10 million dollars isn’t enough to save this company.

  4. I think they’re just paying past due vendors bills, sending whatever they have left on the shelves to fulfill past due crates and closing. I wouldn’t expect any new crates from this point forward. 10 million dollars isn’t enough to save this company.

  5. My guess is that this is just a bailout to fulfill the past crates still owed and pay the past due vendors bills. I seriously doubt any new crates will be sent out. In other words you might get the crate you were owed 3 months ago but don’t expect to get any new ones. Plus now they have bankruptcy protection so run as far away from them as you can.

  6. A Bloomberg article has more exact figures: more than $30mm in trade debt, $20mm of product sales not shipped and nearly $6mm in taxes. They’re not coming back with a $10mm influx…

  7. Still waiting on the Star Trek Crates I paid for in October of 2017!!!!! They refused to refund my money saying they were coming by June 2019. Still nothing.

    • They sent out notice a while back that the Star Trek line was cancelled.

      You should have gotten a refund or a different crate series.

      Do a charge back with your bank to get a refund. Loot Crate doesn’t have anyone to answer emails anymore.

    • They sent out an email months ago letting subscribers know that the Star Trek crate was cancelled. Msa had a post about it.

  8. I cancelled my Loot Crate subscriptions to the Wizarding World Crate and the Sanrio box a few months ago. The quality had declined, and they were always late. I hope everyone that is currently subscribed or still owed boxes can get a refund. I got burned by Beauty Box 5 and Little Lace Box when they each went under, so I know how it feels.

  9. Yeah, $10 million would not be enough to revitalize this company. I’m actually surprised that the “investors” think that they’ll be able to make their $$ back.

  10. I canceled after numerous shipments were missing an item and this weekend I recieved a random pair of boxers in the mail. Hoping the group that acquired loot crate keeps them but cuts the amount of boxes so a manageable number. I really did like their shirts.

    • There won’t be any new investors to continue operations. Loot Crate will pay off their back taxes with most of the $10 million.

      The company that bought them will start to sell off parts of the company to get a small profit out of it. Loot Crate themselves wrote this to stay ahead of the news. The company is officially dead.

  11. I requested a refund about a week and half ago bc i had a feeling this was going to happen, when they pushed my crate delivery back till october for May’s crate. I got my refund. I suggest everyone do as well.

    • I fear it now too late for those who trying to ask for refunds – Average Joe Consumer is always the bottom of the list for pay off when it comes to companies in Chapter 11 paying off debt.

      The only surprise here is that it didn’t happen sooner – the writing has been on the wall ever since the infinite delays on box shipments began.

      I just hope that in the future MSA heeds such obvious red flags and stops featuring such companies altogether versus the weak warnings their posts started to contain fair too late. There are just so many non-questionable boxes our there that giving them press doesn’t make sense.

  12. Unfortunately my son had a year long subscription paid thru Oct and I think it’s been a few months since his last box. Live and learn…never will I prepay for a sub box!

  13. They pretty much mentioned past crates, but not upcoming ones. They’ll likely fill back orders then reimburse for future boxes. As I mentioned in the last LC shipping update thread, all the same signs from Nerdblock were there. Nerdblock said they were coming back in 2018 but there’s been no update for 2 years. I’m going to say LC will be the same. A shame, this box was really good at one point. I have to agree with others, this is just an investor trying to recoup losses, not make the business solvent long term.

    • People need to get refunds ASAP before it turns into the Nerd Block debacle of fighting to get a refund. I was lucky enough to get my refund and lucky enough to see the writing on the wall when the loot crates kept getting later and later to hurry up and cancel.

      • Yes, I got out over a year ago after not only continued lateness but a noticeable dip in quality. Rehashing old items, even from other boxes and then asking in the poll if we liked said rehash was the final straw…

    • To further my comment, if a company files for Chapter 11 with the intent of being acquired, it means they are incapable of being operational/solvent on their own anymore. LC is done. This is likely just the major investor trying to minimize losses/potential losses via lawsuits with no intent on continuing the service beyond the short term while they can enact a plan for those losses.

    • A couple of months ago I started receiving “partner offer” type emails from Nerd Block, so I eventually had to just unsubscribe from them all together.

  14. This is going to be a disaster. If there were just one type of box then I can see that being manageable but they have numerous boxes. I can’t imagine that people are going to see the fulfillment of their subs.

    • And they kept announcing new boxes and taking peoples money!

      • Classic rob Peter to pay Paul scam. They started new crates to get the money to pay the vendors for the items for existing crates. I don’t think they ever had any intention to actually fulfill most of the new crates. Just needed the money and then were like oh sorry we can’t do this sub that you paid for but we’re sending you this instead type of thing.

      • They kept starting new crates to get the money to pay for items for existing crates.

      • Yep. Pretty much the only thing distinguishing this from a Ponzi scheme is that it’s purchase of a product rather than an investment.

  15. This PR statement was written by Loot Crate. On Friday they laid off 50-60 employees without warning, and gave no severance. Employees were told to cash checks before the end of the day. This info was shared by the employees.

    What is most likely happening is, the company that is acquiring them, will then be selling all of the assets piece by piece to recoup their money. They will not be sending out new products. If you get anything, it will most likely be left over items to fulfill your contract.

    The statement makes it seem like Loot Crate will continue, but the reality is it’s over. Get your refunds as fast as you can, and do so by filing a charge back with your credit card company.

    • Thank you Matt for this information. This certainly paints a different story!

      Any company that pays employees by check rather than direct deposit is not a professional operation in my opinion.

      • I worked for Loot Crate for 2 years beginning in 2015 at their warehouse located in Bell, CA. Working as an on Call Packer on their 4 assembly lines. They were a growing company then. In late 2015 they were shipping 450,000 boxes a month around the world. They were on the cover of a Business magazine stating this is an up and coming company that wants to go Public on the stock market. In the end they were cheap. The sourcing and Buyers not qualified to negotiate returns, credits and check quality of product before it shipped. I know this as a former Product Manager of Major Retail companies and AreYouGame.com based out of San Francisco. Anyhow, they hired a new Warehouse Manager in January of 2016.
        He was a Bean counter and sucked the fun out of working at what I would call the Rainbow Coalition of staff at a warehouse. It used to fun to work there, before that change in management. And that was the beginning of The End! So glad I left when I did, as I have moved on to better companies.

      • Some people don’t have bank accounts and don’t want to use debit cards so just because a company uses paychecks rather than direct deposit isn’t unprofessional.

  16. Translation: The investor company put its foot down and said to the staff “WE’RE going to step in and run this show, because you’ve e f f e d it up so badly.”

    As part of this step-in, the investor created a company (the name “Loot Crate Acquisition LLC” is a dead giveaway) that did not exist until a few weeks ago to do exactly what its name says.

    I wish all the best to those of you who are waiting on crates you paid for. It sounds as if the investor thinks that it’s worth continuing this venture, so things are looking up! BUT, they’ve covered themselves well in case this investment continues to lose money and has to fold. An LLC is not a corporation, and there’s less liability if things go south.

    • I doubt the investors are going to do anything other than pay the past due vendors bills.

  17. And this makes me happy that I have stopped my subscription to the harry potter crate. They’re going the way of nerd block. Now with the limited operation costs I can guarantee it’s gonna go the way of even crappier items….

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