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