The thing about garbage is that it is usually pretty cheap to produce. If you only spend a pittance on making a terrible film you might actually make a reasonable profit from its release.
Also the investors may not have known they were funding hot garbage from the start. By the time they know they need to make a choice: Either cut funding immediately and take a total loss, or fund through release and hope to make some money back. Lessening their losses may motivate releasing a terrible film.
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