MoviePass Is Officially Done As Parent Company Files For Bankruptcy
All assets from MoviePass and its parent company will be cleared out soon.
After a series of tumultuous mishaps, such as allegedly changing user's passwords and charging the bank accounts of deactivated users, MoviePass and its parent company have submitted documentation for Chapter 7 bankruptcy, according to The Hollywood Reporter.
The move comes after an announcement on Tuesday, January 28, in which Helios and Matheson Analytics Inc.--MoviePass' parent company--confirmed plans to allow for the liquidation of all its assets. The company found that "after considering strategic alternatives," MoviePass no longer seemed viable as a business to continue. With bankruptcy moving forward, a trustee will be assigned to clean out MoviePass, Helios and Matheson Analytics, and all other affiliated companies in the coming months.
"As a result of filing the Petition, a Chapter 7 trustee will be appointed by the bankruptcy court to administer the estate of the company and to perform the duties set forth in Section 704 of the Code," the filing said.
Despite MoviePass' myriad slipups, including the introduction of Peak Pricing and the limitation on movie availability, the company paved the way for the movie ticket subscription service concept. While MoviePass may no longer be around, the spirit of what the company hoped to achieve continues through competitors like AMC's Stubs A-List, Atom, Cinemark's MovieClub, and more.
MoviePass put an end to its subscription service in September 2019, with the service's parent company looking for financial assistance at the time. During the closing of MoviePass, Helios and Matheson Analytics stated there was a possibility the service could make a return. However, the Chapter 7 bankruptcy filing all but ensures that MoviePass will not make a comeback for the foreseeable future.
Disclosure: ViacomCBS is GameSpot's parent company
Got a news tip or want to contact us directly? Email firstname.lastname@example.org