AMC Theatres has 'substantial doubt' it can remain in business

Authored by edition.cnn.com and submitted by SetYourGoals
image for AMC Theatres has 'substantial doubt' it can remain in business

New York (CNN Business) AMC Theatres, the world's biggest movie theater chain, said on Wednesday that it has "substantial doubt" it can remain in business after closing locations across the globe during the coronavirus pandemic.

The theater chain, which closed its theaters earlier this year, expects to have lost between $2.1 billion and $2.4 billion in the first quarter.

The company also said that its revenue fell to $941.5 million, which was down roughly 22% from $1.2 billion in the same quarter last year. This quarter, the situation has gotten substantially worse.

"We are generating effectively no revenue," the company said in a regulatory filing Wednesday.

AMC AMC will continue to monitor the "potential lifting of various government operating restrictions," but added that the chain has serious challenges even if restrictions are lifted. That includes studios holding back new films from being shown.

UseOnlyLurk on June 3rd, 2020 at 15:10 UTC »

It’ll be interesting how the bully style tactics of the movie industry dependent on theaters existing will handle a situation where movie theaters finally cave from an unprofitable business model.

Tigger_king on June 3rd, 2020 at 14:07 UTC »

Honestly, this will be much like cruise ships. They might go under, but someone else will take up the slack when things normalize. People are creatures of habit, and I guarantee theatres are not permanently dead.

Huffletough880 on June 3rd, 2020 at 13:14 UTC »

There is a lot more detail behind this here: https://www.hollywoodreporter.com/news/amc-theatres-post-loss-up-24-billion-charge-pandemic-1295267

While bad, it isn't as dooming as that quote makes it sound. It seems they have made plans that would carry them to November at the latest but if things haven't started turning around by then it will start to get drastic.