Loot Crate Inc., a “geek and gamer” subscription business whose backers include actor Robert Downey Jr.’s venture-capital firm, has filed for bankruptcy, saying it needs protection from creditors to complete millions of dollars in customer orders, WSJ Pro Bankruptcy reported. The Los Angeles-based company said its debts include more than $30 million owed to trade creditors, many of which have sued the company. It also has more than $20 million in customer orders for which it has been paid but hasn’t yet shipped. Loot Crate, founded in 2012, filed its chapter 11 petition in U.S. Bankruptcy Court in Wilmington, Del., on Sunday. The company plans to sell itself to Money Chest LLC, a lender and bondholder affiliated with an investment group that includes one of the world’s biggest collectible manufacturers and distributors, court papers said. The purchase will be subject to court approval and better and higher bids. Money Chest also has agreed to provide up to $10 million in financing to help the company get through bankruptcy.
