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."
We are still experiencing technical issues with our card-based check-in process and we are diligently working to resolve the issue. In the interim e-ticketing is working. We apologize for the inconvenience and appreciate your patience while we resolve this issue.
It turns out the company actually ran low on money.
Oops!
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.
Helios and Matheson is, well, not doing great these days.
As #MoviePass runs out of operating capital, parent company $HMNY did a massive reverse stock split this week to avoid being delisted by @Nasdaq, and it's not going well. https://t.co/WUqFa6goVa
And some people felt the fact that it scrambled to borrow money but told its customers it was experiencing technical issues was, heh, a little sus.
is ... is Anna Delvey running MoviePass from prison
People LOVE MoviePass, so they are freaking out that it might be in real trouble now.
If @MoviePass dies I die.
DON'T BAIL OUT THE BANKS, BAIL OUT MOVIEPASS
I will exploit the obvious stupidity of MoviePass right up until the moment it crashes and burns and I will enjoy every second of it
If @MoviePass shuts down, is there really anything else to live for? We are truly living in Trump’s America where everything is terrible.
Some customers still didn't have service by midday on Friday.
