DJ MoviePass Parent Files For Bankruptcy
By Micah Maidenberg
The parent company of MoviePass said Wednesday it filed for bankruptcy protection.
Helios and Matheson Analytics Inc. (HMNY), as well as its MoviePass business and another subsidiary, all filed Chapter 7 petitions in the U.S. Bankruptcy Court for the Southern District of New York, according to a securities filing from the company.
MoviePass initially offered cinema fans unlimited visits to theaters for less than $10 a month and gained popularity starting in 2017. The business model proved unsustainable. Last September, MoviePass was shut down and Helios said it was exploring various alternatives.
Helios's market value currently stands at about $7 million, according to FactSet.
The company also said the members of its board offered their resignations upon the bankruptcy filing.
Its current interim chief executive, Parthasarathy Krishnan, and its interim finance chief, Robert Damon, also tendered their resignations, Helios said.
Helios said the resignations of the board members, its interim CEO and interim finance chief were not "the result of any disagreements with the company regarding the company's operations, policies, or practices" but rather due to the company entering Chapter 7 proceedings.
Helios won't have any members on its board once the four members resigned, according to the securities filing.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
January 29, 2020 09:37 ET (14:37 GMT)
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