Entrepreneurs in North Carolina know that running a business always involves taking risks. For the movie ticket subscription service MoviePass, its parent company Helios and affiliate Matheson Analytics, the odds against them proved too high to overcome. After a series of technical problems hobbled the MoviePass application and various pricing plans failed to attract enough customers, the companies filed for Chapter 7 bankruptcy protection.
Filings to the Securities and Exchange Commission indicated that the companies had investigated alternatives to bankruptcy but could not form a plan to remain viable in the marketplace. With the bankruptcy now officially declared, a court can appoint a trustee to manage the liquidation of the business estate and execute other required duties.
Although MoviePass had claimed to have millions of subscribers at one point, it lost momentum amid a series of technical issues. Business people in Hollywood had always viewed its monthly $9.95 flat-fee subscription for theater tickets as unsustainable. Pressure from competitors, like AMC’s Stubs A-List and Cinemark Movie Club, also contributed to the demise of MoviePass.
A person who must seek protection from creditors related to a business might want guidance from an attorney with a bankruptcy-commercial practice. An attorney may explain how the liquidation process could unfold and the liabilities that a court could permanently resolve. Clients may learn which assets are exempt from liquidation or which debts cannot be discharged. Legal support might assist with the preparation of accurate financial disclosures that must be filed with the court. An attorney may inform creditors of the bankruptcy action and take action to protect a debtor’s rights from prohibited collections actions. Any questions or problems arising at court might be handled by an attorney, who may strive to keep the process moving forward.