Helios and Matheson Analytics (HMNY  ), the parent company for the infamous MoviePass service, has filed for Chapter 7 bankruptcy, bringing an end a saga that has perplexed investors, experts, and consumers alike.

Helios and Matheson's Chapter 7 filing is the final death throe of a company that lost astronomical amounts of money on a once wildly popular service. The company's filing with the Securities and Exchange Commission means that the company will now go into liquidation, though it is currently unknown if the company's assets and whatever cash it may have left will be enough to cover Helios and Matheson's considerable debt. The move is unsurprising given MoviePass' infamous notoriety as a cash-burning venture, which shut down in September of last year.

MoviePass had, at one point, taken the movie industry by storm. It's remarkably low subscription price of $9.99 a month for unlimited movies (though this service was limited to one movie per day) caused the company to accrue 1 million subscribers within several months. Despite its massive customer base and popularity, MoviePass had an inherently unsustainable business model. $9.99 a month was far too low to cover the costs each ticket, leaving MoviePass footing the bill on every ticket purchase and burning through any profits it made and the considerable venture capital it had acquired. The company was met with stiff resistance by companies such as AMC (AMC  ) and Regal Cinemas (Cineworld), who refused to strike deals with MoviePass that would have kept the company afloat due to its business model that ran contrary to the interests of the theater chains. Despite attempts to limit access to the service to save money, MoviePass eventually suspended operations in September of 2019, marking the unofficial end to the service. MoviePass' aggressive tactics caused both Regal and AMC to create their own subscription services, which have subsequently succeeded where MoviePass failed.

The company is now entering liquidation with its board of directors entering their resignations, its stock price at zero, and 12,000 former subscribers listed as creditors in its filings. While many subscribers terminated subscriptions with MoviePass as the company began to go under and take extreme steps to save money, some remained and were actively charged up until the September suspension. According to the filings with the SEC, Helios and Matheson owe $1.2 Million in fees for unused services to customers. The filings also point to attempts by Helios and Matheson to expand MoviePass' operations as being major contributors to the company's downfall, with side projects such as a production/distribution division costing the company roughly $500 million; none of the side projects would pan out.