Thursday, June 4, 2020

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



By Frank Pallotta, CNN 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.  Read more >>