Struggling MoviePass Just Took Out A $5 Million Loan To Resume Service
The company told customers its service outage was due to a "technical issue."
MoviePass customers discovered on Thursday that they couldn't get tickets. The service lets you see (mostly) unlimited movies for a flat fee (even though it has notoriously bad customer service). MoviePass tweeted that it was experiencing "technical issues."
According to a Securities and Exchange Commission filing that MoviePass's parent company, Helios and Matheson Analytics, made on Friday morning, it had to take out a $5 million short-term loan to pay some of its partners.
The loan is from a hedge fund called Hudson Bay Capital Management, and MoviePass's parent company has to start paying it back by the beginning of August, which is, um, really soon.
BuzzFeed News has reached out to MoviePass and Hudson Bay for comment.