MoviePass owner filed for bankruptcy today and disclosed it is under 7 different investigations from state and federal officials by rachsandl
(Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images: MoviePass owner Helios and Matheson Analytics filed for bankruptcy on Wednesday and disclosed it is under seven different investigations from state and federal officials after its once-popular discounted movie ticket service floundered in epic fashion, bled subscribers and failed to find a sustainable business model to keep the service running.
Helios and Matheson Analytics filed for Chapter 7 bankruptcy, meaning the company will dissolve itself and sold for parts in an attempt to pay back its creditors. During Chapter 11 bankruptcy proceedings, companies typically negotiate with creditors to avoid selling off assets. MoviePass has been shut down since September 2019, although at the time the company said it could be temporary if it secured new financing or found a buyer to keep the service going. The filing also disclosed the company is currently under pending investigations from the Federal Trade Commission, four district attorneys in California, the New York attorney general and the Securities and Exchange Commission.
The SEC declined to comment. A spokesperson for the Sonoma County district attorney said an investigation was in its early stages and no charges have been filed yet. None of the other offices immediately responded to a request for comment from Forbes.Key background : MoviePass surged in popularity in 2017 and eventually netted more than 3 million subscribers who opted to pay $10 per month for the ability to see unlimited movies in theaters. But the business model collapsed after MoviePass could no longer afford to heavily subsidize the costs of movie tickets.
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