MoviePass Shut Down Because It Couldn’t Pay The Bills, Borrows Millions
The popular movie service had a major shutdown and was forced to borrow millions to turn the service back on.
On Thursday, July 26, MoviePass subscribers had a rude awakening when their MoviePass service was not working. According to Business Insider, MoviePass literally ran out of money to run their service.
Business Insider said that the owner of MoviePass borrowed $5 million from Demand Note to temporarily use it to pay merchants and processors. However, if they do not pay the merchants and processors on time again, another service shutdown will occur.
But the $5 million wasn't enough to get everything fully functional by Friday, July 27. Business Insider reports that MoviePass had to borrow another $1.2 million from Hudson Bay Capital Management. They also requested another $5 million from Hudson Bay Capital Management, presumably to pay off the $5 million from Demand Note.