By Having been closed for over half a year now, AMC Theatres is not doing well during the coronavirus pandemic. In a regulatory filing posted earlier this morning, the company expressed “substantial doubt” that it will be able to remain in business after closing locations across the globe. In just the first quarter of 2020 alone, the multiplex chain expects to lose between $2.1 billion and $2.4 billion of revenue. I’ll get my tiny fiddle ready.
“We are generating effectively no revenue,” said the company in an official statement. “Even if governmental operating restrictions are lifted in certain jurisdictions, distributors may delay the release of new films until such time that operating restrictions are eased more broadly domestically and internationally, which may further limit our operations.” Oh woe is the giant corporation.
The company has reported a $718.3 million cash balance as of April that will continue to diminish as the months go on. After taking a stand against Universal and refusing to show any films from the studio following the success of Trolls World Tour, AMC might be singing a different tune once theaters re-open. It won’t be able to buy that 17th yacht without that sweet, sweet Fast & Furious box-office.
Seriously, though, I have no problem with AMC closing shop. While that does mean people will lose jobs, new theater chains that aren’t complete garbage can open and replace AMC with ease. We might even be able to see a return to reasonable ticket and popcorn prices like back in the 90s (or any of the decades before).
AMC Theatres has ‘substantial doubt’ it can remain in business [CNN Business]
