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MoviePass to Shutdown Indefinitely on Sept. 14

MoviePass Gotti

MoviePass’s Rod Vanderbilt (left), CEO Mitch Lowe and mother or father firm Helios & Matheson CEO Ted Farnsworth, on the premiere of Gotti, starring John Travolta/Dave Kotinsky/Getty Images

The curtain has lastly closed on MoviePass.

The subscription movie-going service’s mother or father firm Helios and Matheson introduced on Friday that the service will shut down on Sept. 14, with no plans to relaunch.

“MoviePass notified its subscribers that it would be interrupting the MoviePass service for all its subscribers effective September 14, 2019, because its efforts to recapitalize MoviePass have not been successful to date,” Helios and Matheson mentioned in a press release. “The company is unable to predict if or when the MoviePass service will continue. The company is continuing its efforts to seek financing to fund its operations. There can be no assurance that any such financing will be obtained or available on terms acceptable to the Committee”

In addition to shutting down MoviePass, Helios and Matheson mentioned that its board of administrators has shaped a strategic overview committee to be able to establish, overview and discover all strategic and monetary options for the corporate, “Including a sale of the company in its entirety, a sale of substantially all of the company’s assets including MoviePass, Moviefone and MoviePass Films, a business reorganization or one or more other extraordinary corporate transactions, together with the assumption or settlement of the Company’s liabilities in connection with any of these alternatives.”

It’s been a sluggish dying for MoviePass, which struggled to boost cash and proper the ship after a tumultuous 12 months and alter.

After slashing the value of a subscription to $10 a month from as a lot as $50 in August 2017, MoviePass loved a interval of speedy subscriber progress — greater than anticipated — and newfound recognition. But the enlargement proved economically unsustainable.

The firm burned by hundreds of thousands of {dollars}, suffered from what it mentioned was a big fraud downside, frequently pissed off clients and struggled to maintain its head above water.

In July 2019, MoviePass shutdown providers for what it referred to as on the time a “temporary hold” to cope with unspecified “maintenance related issues.” MoviePass additionally mentioned it might use that point to recapitalize, to no avail.

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