MoviePass and its parent companies Helios and Matheson Analytics filed for bankruptcy on Wednesday local time,media CNET reported. The Securities and Exchange Commission said the decision came after MoviePass considered it a “strategic choice.” The company filed for bankruptcy in the U.S. District Court for the Southern District of New York.
“Under Chapter 7 of the U.S. Bankruptcy Code, the Bankruptcy Court will appoint a trustee to manage the company’s property,” the document states. “
MoviePass, a subscription service that allows customers to buy multiple movie tickets a month, shut down on September 14 last year when its recapitalization efforts failed.
MoviePass came under fire in 2018 for reactivating its account and requiring previous customers to opt out of subscribing. In the wake of the MoviePass chaos, the company’s controversial practices include peak-hour price increases, temporary service disruptions due to lack of funds, and restrictions on audience viewing during blockbusters such as “Spy in the Discs: Total Disruption.”
The company also faced criticism in August 2019 after reports that It had changed its password to prevent users from ordering tickets. Later that month, thousands of of the company’s customer information was exposed online.
Helios and Matheson Analytics did not immediately respond to requests for comment.