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MoviePass and parent company Helios and Matheson Analytics have at long last called it quits.
Both companies and affiliates have filed for Chapter 7 bankruptcy protection, which signal they no longer have a viable plan to continue business.
The move, revealed Tuesday in a SEC filing and coming “after considering strategic alternatives,” will allow a bankruptcy court trustee to liquidate the holdings of MoviePass, its parent and affiliate companies.
“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 regulatory filing said.
The final demise of MoviePass has been well telegraphed. The once-influential theater subscription service offered its users unlimited movies per month for a flat fee of $9.95.
MoviePass, at one time led by chairman Ted Farnsworth and CEO Mitch Lowe, shut down Sept. 14. The app once boasted several million subscribers at its peak, but shuffled through multiple pricing plans and faced several technical issues that stalled momentum.
MoviePass also faced heavy skepticism within Hollywood that it had a sustainable model, despite its early growth. Major theatrical exhibitors found ways to compete against MoviePass’ model.
AMC’s Stubs A-List subscription plan ($20 to $24 a month), launched in June 2018, while theater giant Cinemark unveiled its own Movie Club ($10 a month) service in 2017.
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