Helios and Matheson Analytics, the parent company of MoviePass, said on Wednesday (Jan. 29) that both companies and their affiliates have filed for Chapter 7 bankruptcy.
In a filing with the Securities and Exchange Commission (SEC), the company, which shuttered MoviePass in September, indicated that all remaining board members – Prathap Singh, Gavriel Ralbag, Muralikrishna Gadiyaram and Joseph Fried – have resigned.
The company’s current Interim CEO Parthasarathy Krishnan and Interim CFO Robert Damon have also resigned.
“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 MoviePass cinema subscription service was launched in 2011 and gained popularity in 2017 when it was purchased by Helios and Matheson, when the monthly subscription fee dropped to $10 a month for unlimited visits to theaters. The app had several million subscribers at its peak, but technical issues, changes in pricing and competition all played roles in its demise, according to reports.
The company could owe refunds to some 12,000 subscribers, totaling about $1.2 million, USA TODAY reported. The subscribers were listed as unsecured creditors in the 174-page report.
Helios’ market value is estimated at $7 million, according to FactSet. The company reported $396 million in assets and $277 million in debts in its Chapter 7 bankruptcy petition. The stock fell to zero, MarketWatch said.
MoviePass was delisted from NASDAQ in February 2019 after its stock fell below $1. At the time, a spokeswoman for Helios and Matheson said the delisting has “no effect on the day-to-day business operations of HMNY or its subsidiaries, including MoviePass and MoviePass Films.”
In October, the firm announced that it was creating a new subsidiary called MoviePass Entertainment Holdings Inc., which would take ownership of MoviePass and other film-related assets held by Helios and Matheson.