AMC faces serious cash crunch despite theaters reopening

Movie theater chain says it has serious doubts about cash flow

National /
Oct.October 20, 2020 12:15 PM
AMC’s financial woes have left the movie theater chain strapped for cash and facing in-court restructuring of its liabilities. (iStock; Getty)

AMC’s financial woes have left the movie theater chain strapped for cash and facing in-court restructuring of its liabilities. (iStock; Getty)

Movie theaters are reopening across the country, but that may not be enough to save some of the biggest cinema operators.

AMC Entertainment Holdings, one of the world’s largest movie theater operators, said it could run out of cash by the end of the year if it can’t find additional sources of liquidity, Reuters reported.

The company said in a filing on Tuesday that “substantial doubt exists about the company’s ability to continue as a going concern for a reasonable period of time.” In order to raise funds, it will issue shares, but it also said that it may still need to restructure its debt.

AMC has seen visitors to its theaters fall by 85 percent compared to last year, according to Reuters.

Movie theaters have been pummeled by the pandemic. Although some chains, including AMC, have reopened theaters, moviegoers remain skittish about going back to theaters due to concerns in contracting the virus.

Hollywood studios are also holding back big releases until next year, including MGM/Universal’s new James Bond film “No Time to Die,” giving people less incentive to head to theaters.

AMC’s rival Cineworld recently announced it would temporarily close its 663 theaters in the U.S. and England after opening its theaters back up.

[Reuters— Keith Larsen


Related Articles

arrow_forward_ios
Chick-fil-A CEO Andrew Cathy and a rendering of Chik-fil-A 2205 Central Park Avenue in Yonkers  (Chik-fil-A/City of Yonkers)
Chick-fil-A hatches first Westchester location
Chick-fil-A hatches first Westchester location
Harry Macklowe with 1 Wall Street
Macklowe’s 1 Wall Street tops Manhattan’s largest retail leases of 2022
Macklowe’s 1 Wall Street tops Manhattan’s largest retail leases of 2022
(Photo Illustration by Steven Dilakian for The Real Deal with Getty)
Manhattan retail market rises again, but momentum wanes
Manhattan retail market rises again, but momentum wanes
Retail, Shopping Centers, Cushman & Wakefield
U.S. shopping center vacancy hits 15-year low
U.S. shopping center vacancy hits 15-year low
(Getty Images)
Bed Bath & Beyond weighs bankruptcy
Bed Bath & Beyond weighs bankruptcy
223 East 86th Street and H Mart CEO Il Yeon Kwon (Getty, H Mart, Google Maps)
Grocery chain H Mart to open Upper East Side location
Grocery chain H Mart to open Upper East Side location
Thor Equities’ Joe Sitt with139 Fifth Avenue
Under Armour to open Flatiron outpost at Thor’s 139 Fifth Ave
Under Armour to open Flatiron outpost at Thor’s 139 Fifth Ave
From left: Schuckman Realty’s Kenneth Schuckman and Augenbaum Realty’s Josh Augenbaum with  1730 Bedford Avenue (Loopnet, Schuckman Realty, Augenbaum Realty, Getty)
Brooklyn’s top 10 retail deals of 2022
Brooklyn’s top 10 retail deals of 2022
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...