MoviePass, the troubled cinema subscription firm that pledged to provide unlimited tickets for under $10 a month, is filing for bankruptcy.
Helios and Matheson, the parent company of MoviePass, revealed it would be liquidating after asking the court to oversee the sale of its remaining assets and the wind-down of the business.
The operator ceased operations in September after notifying subscribers that it would be interrupting the service for all its subscribers effective Saturday, September 14, “because its efforts to recapitalise MoviePass have not been successful to date.”
MoviePass’ business model saw the movie subscription firm attempt to disrupt the ticketing market by unveiling a strategy in August 2017 that allowed customers to see a movie a day in cinemas, including new releases, on an annual basis for a fee of $9.95 (£7.90/€8.76) per month.
However, with subscriber figures hitting three million within months, MoviePass has since been trying to restructure its model as it attempts to break even on the tickets it is selling.
By July 2018, MoviePass had run out of cash, meaning the service was forced to temporarily shut down until the company was able to secure an emergency $5m loan.