(CelebrityAccess) — Moviepass, the ticketing service that promised unlimited movie tickets in exchange for a monthly subscription, is filing for bankruptcy.
Helios and Matheson Analytics Inc. the parent of the MoviePass, announced on Wednesday that the company had filed for Chapter 7 and asked the court to oversee the sale of its remaining assets and the wind-down of the business.
Moviepass itself ceased business operation in September.
Moviepass’s business model was always a little puzzling, offering unlimited entry to films for a monthly subscription price that was exceeded by the costs of the movie tickets it provided. Unsurprisingly, the company began losing money to the tune of millions of dollars a month.
In 2018, the company ran into bad press when they were unable to deliver tickets to subscribers, prompting Moviepass to impose tighter restrictions on the number of movies customers could watch, and which movie tickets would be available through the program.
More recently, executives said they hoped to revive the company’s prospects with the monetization of user data and by selling ads for movies and theater chains but the plan failed to produce the hoped-for revenue.
As part of the bankruptcy, Moviepass has seen an outflow of execs, including board members Prathap Singh, Gavriel Ralbag, Muralikrishna Gadiyaram and Joseph Fried, as well as interim CEO Parthasarathy Krishnan and interim CFO Robert Damon.