It’s no surprise but MoviePass, the once-highflying movie-ticket subscription service that crashed in an ocean of red ink last year, has announced its final demise, declaring Chapter 7 bankruptcy. So has its oddly-named parent company Helios and Matheson Analytics.
Unlike Chapter 11, where companies can be reorganized and survive, this gang is dissolving, shutting its doors and everyone has resigned. Four months after the MoviePass service closed down it’s clear it’s not coming back.
The company’s interim CEO Parthasarathy Krishnan and CFO Robert Damon both tendered their resignations, as did remaining members of the board of directors, Prathap Singh, Gavriel Ralbag, Muralikrishna Gadiyaram, and Joseph Fried.
The company was hot, hot, hot with moviegoers and Wall Street for a time. But it couldn’t sustain the financial burden of lowering its subscription price from $50 to $10 a month to let fans see a movie a day. MoviePass had to subsidize the difference with theaters.
“After considering strategic alternatives, Helios and Matheson Analytics and its subsidiaries MoviePass and Zone Technologies each filed a voluntary petition for relief … under the provisions of Chapter 7 of Title 11 of the United States Code,” the companies said in a filing with the SEC.
The filing was made in the United States Bankruptcy Court for the Southern District of New York.