Loot Crate Files for Bankruptcy

LOCK HAVEN – Loot Crate, a subscription box company headquartered in Los Angeles and with a distribution facility in Lock Haven, has filed for Chapter 11 Bankruptcy.

According to a report from Bloomberg News, the company filed for operating bankruptcy on Monday of this week with plans to “sell itself after running low on cash.” The story said 50 employees were let go last week and some 60 full-time employees remain.

Loot Crate has occupied distribution in the former Piper Aircraft manufacturing facility in Lock Haven’s lower end, moving to town in 2017. According to most recent reports, there were 15 employees in Lock Haven and according to local industrial development officials those 15 were still employed at the beginning of this week.

The company ships fan boxes containing “geek and gamer products” to subscribers on a monthly basis, according to court documents filed in Delaware; those documents show Loot Crate with some 250,000 subscribers.

Loot Crate’s court declaration said its credit-card processor is withholding customer billings, the company has not shipped some $20million in sales and owes better than $30 million in trade debt, plus is behind on nearly $6 million in sales taxes.

Loot Crates leases space in the old Piper site. The building’s owner was in Lock Haven on Tuesday and said he is aware of the bankruptcy filing.

Loot Crate moved into the building in March of 2017. At the time company officials said the site was picked as its East Coast distribution center to better serve East Coast customers and the Piper building allowed for future growth. An employment level of 10 to 15 was the initial job hiring goal.