In a repeat from a story earlier this year, AMC Theatres has stated that it might possibly run through its remaining cash reserves by late 2020 or early 2021. Back in June, the national chain was struggling during the on-going coronavirus pandemic and stated, “We are generating effectivly no revenue.” While things were looking up before the release of Tenet in August, the dramatic shift away from theatrical releases for the remainder of 2020 has put the future of AMC in even greater doubt.
“Given the reduced movie slate for the fourth quarter,” an official statement from AMC reads, “in the absence of significant increases in attendance from current levels or incremental sources of liquidity, at the existing cash burn rate, the Company anticipates that existing cash resources would be largely depleted by the end of 2020 or early 2021.” That’s pretty bleak.
To recoup some of its losses, AMC is looking into the possibility of liquidation on some of its existing locations. “To meet its obligations as they become due, the Company will require additional sources of liquidity or increases in attendance levels,” AMC stated. “The required amounts of additional liquidity are expected to be material.”
Currently, 494 of AMC’s 598 U.S. locations are operating, but have seen attendance fall at an alarming 85%. With theaters in NYC and LA remaining closed, AMC is struggling to gain any profit as social distancing measures are strictly enforced. With citizens (thankfully) unwilling to venture out to the movies, the company’s future prospects likely won’t see a sudden change for the better.
Source: Variety
