AMC Theaters Considering Bankruptcy, Could Close By End of 2020
Just chalk another one up to the coronavirus pandemic. This time, it's AMC Theaters who are experiencing financial trouble.
AMC is the countries largest movie chain with over one thousand locations, and over eleven thousand screens, plus a number of Connecticut locations including Danbury.
Now they are facing their biggest challenge ever, as the COVID-19 pandemic forced all theaters to close down in March, and with Hollywood pushing blockbuster movie release dates back to at the earliest 2021, the theater chain is scrambling to raise additional capital just to be able to remain open.
As reported on fox61.com, AMC CEO, Adam Aron, explained that if things didn't improve quickly, the company, as a last resort, would consider filling for bankruptcy.
We'd like to succeed in this effort. If we don't, obviously we'll have to consider other options down the road. But that time has not yet arrived, and any reports to the contrary are wholly inaccurate.
As we reported a few weeks ago, the nations second largest chain, Regal Cinema's, temporarily closed over 500 theaters across the country, including their four Connecticut locations.
Once again AMC CEO, Adam Aron, is concerned that the Regal Cinema closings could act as a domino effect for other chains.
Certain competitors have decided to temporarily re-close their theaters in light of the ongoing pandemic and the reduced slate of movie releases, which may further exacerbate the trend.
It's not like they are not trying to bring audiences back to their theaters. You may remember back in August, the chain offered a fifteen cent special for movies during the re-opening.
Bottom line, if there's not a turnaround, or the virus gets worse, it could mean that AMC will run out of money by the end of the year, and join a growing list of companies who have had to close their doors for good.