MW MoviePass parent Helios and Matheson files for Chapter 7 and stock falls to zero
Helios and Matheson Analytics Inc. (HMNY), the parent of the MoviePass cinema-ticket subscription service, said Wednesday it has filed for Chapter 7 bankruptcy, allowing a court to sell its remaining assets and wind down all operations. In a filing with the Securities and Exchange Commission, the company, which shuttered MoviePass back in September, said board members Prathap Singh, Gavriel Ralbag, Muralikrishna Gadiyaram and Joseph Fried have tendered their resignations, leaving the company with no remaining board members. Parthasarathy Krishnan has resigned as the Interim chief executive and Robert Damon has resigned as interim chief financial officer. MoviePass made a splash when it first started offering users unlimited entry to films for a monthly subscription price that was way below what was needed to cover the costs. The company was soon under water and was recording million-dollar monthly deficits. Executives said they were hoping to generate revenue by monetizing user data and selling ads for movies and theater chains, plans that never came to fruition. Before launching MoviePass, Helios and Matheson was a small data-analytics company. The stock has fallen to zero.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 29, 2020 10:11 ET (15:11 GMT)
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