Loot Crate Inc., the monthly subscription service you heard about on your favorite podcasts, has filed for Chapter 11 bankruptcy. The bankruptcy notices comes ahead of credit card processor Vantiv which notified the company it was going to cease processing charges Monday, after the processor feared subscribers would request refunds for undelivered crates.
Loot Crate owes $20 million to subscribers who prepaid their subscriptions and $30 million to creditors. Their list of unsecured creditors includes lenders, t-shirt manufacturers, professional service companies, the occasional licensed products company (Bio World is owed around $1.48 million), some licensing entities (MLB Advanced Media and Marvel Brands, owed $500,000 and $469,000, respectively), and Facebook, which was owed $1.04 million.
Loot Crate recently laid off 50 employees in an attempt to cut costs. The company expects to continue to operate. Loot Crate had an annual revenue of $165 million in 2016.