MoviePass will shut down Saturday, September 14, its parent company Helios and Matheson Analytics announced Friday.
Helios and Matheson stated efforts to recapitalize the embattled movie-ticket membership service had actually “not succeeded to date” which it was “not able to predict if or when the MoviePass service will continue.”
MoviePass surged in popularity in 2017 after Helios and Matheson bought the service and considerably lowered the price. However it burned through numerous millions of dollars and failed to find an organisation design that didn’t result in enormous losses.
Throughout MoviePass’ collapse, CEO Mitch Lowe locked some customers out of their accounts and used other tactics to try and keep the business running, according to multiple inside sources who Organisation Expert spoke with throughout a four-month examination into the company’s practices, which was released in August.
MoviePass, in addition to Moviefone and MoviePass Films, which are all owned by Helios and Matheson, will be up for sale, the business stated Friday.
Helios and Matheson’s “board of directors has formed a strategic review committee, composed totally of the business’s independent directors, to determine, examine and check out all tactical and monetary alternatives for the company, consisting of a sale of the business in its totality,” the company said.
This statement came as Service Expert waited for remark from Helios and Matheson on a story that detailed the business’s attempts to sell MoviePass and Moviefone, in addition to continued layoffs.
The Friday before the Labor Day holiday weekend, the Moviefone editor Drew Taylor sent an email to the site’s freelancers informing them that “efficient instantly all freelancing is suspended.” The email, obtained by Business Expert, went on to state that Moviefone would ensure “everybody gets paid what they’re owed as soon as possible,” however numerous sources stated some freelancers had actually not been spent for months.