AMC Theatres May Have to Close Due to Pandemic
AMC Theatres has said that they will most likely be closing up shop after having to shut down around the globe during the pandemic.
"We are generating effectively no revenue," the company said. "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."
The company said that they have about a $718 million cash balance as of April and that they "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."
AMC said that they expect to have lost between $2.1 billion and $2.4 billion in their first quarter.