MoviePass Experiences Financial Blunder, Receives Loan To Resume Operation

Movies News MoviePass
Share Tweet Submit Pin
MoviePass Experiences Financial Blunder, Receives Loan To Resume Operation

MoviePass and its patrons aren’t having the best day.

On Thursday, after MoviePass experienced digital ticketing problems and some customers were denied entry into theaters, the movie theater subscription company received a hefty bailout. Apparently, problems of the financial variety were causing the issues. MoviePass didn’t have enough money, so its parent company, Helios and Matheson Analytics Inc., copped a short-term loan of more than $6 million from Hudson Bay in order to resume operation, reports Bloomberg.

According to Bloomberg, MoviePass wasn’t able to clear payments, so some of their services were temporarily terminated (i.e. buying movie tickets for its subscribers). MoviePass’ most recent tweet (from Thursday night) seeks to offer some more explanation:

It’s no secret MoviePass has been in money trouble for a while now—the company is on track to rack up $45 million in deficit each month this summer. Yikes. Perhaps in an effort to strengthen their marketing strategies, MoviePass began selling pun-themed merchandise in June, but there’s no word yet on how that’s working out for them.

Recently in Movies