AMC Theaters Releases Statement on Their 'Substantial Doubt' That They Will Be Able to Remain in Business

AMC Theaters, and all movie theaters for that matter, knew early on that the closures they faced from the COVID-19 pandemic were going to be devastating to their futures. Now, as public places are looking forward to slow re-openings with new protocols in place, AMC, one of the nation’s largest movie theatre chains, has spoken out about the future of the company, citing “serious doubt” that they will be able to remain in business.

The theater chain expects to have a loss in the range of $2.1 billion and $2.4 billion in the first quarter. The company stated:

"We are generating effectively no revenue. 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.

They went on to add:

We believe we have the cash resources to reopen our theatres and resume our operations this summer or later. Our liquidity needs thereafter will depend, among other things, on the timing of a full resumption of operations, the timing of movie releases and our ability to generate revenues."

Films that theaters were counting on for revenue were either released digitally or pushed pretty far back, to ensure that they wouldn’t have to reschedule again. So theaters are left with little to show during initial opening.

I hope they can hold on and continue to build and bounce back from the setback. I love going to the movies, and I like having a few theaters to choose from. I am looking forward to getting back and seeing Tenet on the big screen, as well as many others coming up in the next year.

What movies are you looking forward to seeing on the big screen?

Source: CNN