AMC is pressed to get eyes back in front of their screens — but not without some cuts ahead.
The world’s largest movie theater chain recently announced that it was facing billions of dollars in losses and was concerned about the company’s ability to survive the pandemic.
Now, to compensate for such losses, AMC hopes to be fully operational by July, but may cut some of its theaters in 2021 and 2022, according to the Wall Street Journal.
“We’re going to have to take a very hard look, especially as theaters come up for normal lease expirations,” AMC CEO Adam Aron said.
The chain has over 600 locations in the U.S. and close to 1,000 around the world. However, the company failed to pay most of its rent in May, according to a recent rent collections report from Datex.
Some parts of the country, including Los Angeles, are allowing theaters to reopen as long as social distancing guidelines are followed. Such regulations would limit how much revenue the theater operator can draw in.
In other parts of the country, moviegoers will have to wait through a longer intermission before they can head back to theaters. In New York, theaters are included in stage four of the reopening plan. The first stage began Monday.
As AMC prepares to reopen, the company is consulting with faculty members from the Harvard T.H. Chan School of Public Health on health and safety protocols. [WSJ] — Sasha Jones