Deals
Cash Squeeze Forces Subscription Box Startup Into Bankruptcy
- Loot Crate ships ‘geek and gamer’ boxes to monthly subscribers
- Company arranges $10 million bankruptcy loan to fund sale
Workers prepare boxes at Loot Crate in Los Angeles in 2014.
Photographer: Irfan Khan/The Los Angeles Times via Getty Images
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Subscription box startup Loot Crate Inc. filed for Chapter 11 bankruptcy with plans to sell itself after running low on cash.
The Los Angeles-based company ships curated fan boxes filled with “geek and gamer products” to subscribers each month, Chief Restructuring Officer Stuart Kaufman said in a court declaration filed in Wilmington, Delaware. The contents include figurines, shirts, gear, gadgets and limited edition collectibles tied to science fiction, gaming, sports and pop culture. They’re shipped to more than 250,000 recurring subscribers, court papers show.