AMC movie theaters are in trouble due to the COVID-19 pandemic, and now things are looking very bad. AMC has submitted an SEC filing warning that its existing cash “will be depleted” in January 2021 if it doesn’t find help. The company estimates that it needs “at least” $750 million to remain intact next year.
AMC was exploring options that included additional financing, more debt, and further negotiations with landlords to delay rent payments. It was also open to the possibility of a joint venture or other team-ups with partners.
With a surge in US COVID-19 infections, more studios are releasing movies on streaming services, theater attendance is worse than ever. Despite 404 of 594 US theaters being open, ticket sales plunged 92 percent year-over-year in October and November. People are afraid to gather to watch a movie on a big screen, and studios are reluctant to delay movies to ensure theater-only premieres.
Regal said it would close all US theaters in October due to the pandemic.
Maybe AMC will get some help to keep running. This is one of the country’s largest theater operators collapsing. If they fold, it could dramatically affect the media landscape by reducing access to movies in theaters and push more viewers to stream.