Fans of the Monthly Subscription Box woke up with disappointing news today to find that LootCrate will be filing for Chapter 11 Bankruptcy; You might be wondering, What is Chapter 11 Bankruptcy? Well, here is what it means: “This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.” According to the US Government.
They have agreed to sell its assets to Loot Crate Acquisition LLC, though from the initial release that the company suggested that subscribers will still receive their crates. Once the sale is formalized and submitted later in the week, other companies will have 45 days to submit competing offers for Loot Crate’s assets. Christopher Davis, a Loot Crate’s Chief Executive Officer had this to say about the Company’s current situation:
“We have worked diligently to overcome challenges with our capital structure, along with legacy issues the Company has been struggling with for the past 18 months. We are very pleased with our progress from an operational efficiency standpoint, however, the company still faces liquidity issues, After careful review of a wide range of available options, management determined that a sale of the Company is in the best interests of all parties, including our valued Looters (customers) and employees.”Christopher Davis, a Loot Crate’s Chief Executive Officer
Loot Crate has received a commitment of up to $10 million from Money Chest LLC, a current investor in the company to help facilitate the sale and transition.
“During the sale process, we will have the financial resources to purchase the goods and services necessary to fulfill our Looters’ needs and continue the high-quality service and support they have come to expect from our Loot Crate team.”Christopher Davis, a Loot Crate’s Chief Executive Officer
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