MoviePass is officially over and has filed for bankruptcy

After years of disaster, MoviePass and parent company Helios and Matheson Analytics have finally called it quits. Both companies have filed for Chapter 7 bankruptcy protection, which means that they have no profitable plan to continue their business. The decision was announced in an SEC filing, which they acknowledged that this filing will allow a court to liquidate all holdings of MoviePass, Helios and Matheson Analytics, and their affiliated companies.

The final nail in the coffin of MoviePass has been well reported. The once-popular theater subscription service offered its subscribers unlimited Movies each month for a flat fee of $9.95.

MoviePass, once led by chairman Ted Farnsworth and CEO Mitch Lowe, closed its doors Sept. 14. The service once boasted several million subscribers at its peak, but later fell after multiple pricing plans and several technical issues.

MoviePass faced serious problems from the start

MoviePass faced heavy skepticism from the industry claiming they had an unsustainable model, despite growth at the beginning. Major theater companies developed their own services, forcing MoviePass to suffer even more. MoviePass's early shut down was rumored to be temporary but CEO Mitch Lowe at the time said he was unable to predict if or when the service would continue.

The company named 12,000 subscribers as creditors in its filing and details how much money they're owed from the company.

Helios issued a warning in 2018 about the company's ability to stay afloat. The company made several attempts, but technical issues plagued the system adding to their failings. It's a most serious gaffe, came July 27, 2018, when MoviePass temporarily ran out of money and was unable to purchase tickets until they secured a new loan.

MoviePass also faced a massive security breach that exposed customer records.

MoviePass could owe millions to subscribers

The Verge has reported that MoviePass may end up owing $1.2 million to nearly 12,000 customers. It's unclear whether that group includes a certain batch of MoviePass subscribers, like annual users who were precharged for the service before its closure.

MoviePass once boasted nearly 3 million subscribers. Many of those subscribers left the company when they started to restrict how MoviePass could be used because its unlimited plan was adding to its massive quarterly losses. MoviePass and its other businesses include a film production and distribution arm.

MoviePass's new CEO Ted Farnsworth acquired MoviePass in 2017 and was attempting to salvage the company using his own money and money from investors. However, it looks like his attempts at saving the unstable company.