As moviegoers continue to Netflix and chill during the pandemic, movie theaters have been dark.
Now, AMC Theaters has disclosed it may have trouble staying in business, according to the New York Times, citing a recent Securities and Exchange Commission filing.
AMC is the largest theater company in the world, with over 600 locations in the U.S. and 1,000 total. But the coronavirus sent movie theaters into a tailspin, forced to close their doors in March. All AMC locations remain closed worldwide.
“During this period, we are generating effectively no revenue,” the company said in its SEC filing, the Times reported. It added that “substantial doubt exists about our ability to continue as a going concern for a reasonable period of time.”
The Kansas-based chain expects to have lost between $2.1 billion and $2.4 billion in the first quarter, compared to a $130.2 million loss during the same time last year.
The company’s revenue plummeted 22 percent to $941.5 million. In the same quarter last year, AMC brought in $1.2 billion.
In April, AMC took on $500 million in new debt as a bridge to when it could reopen. According to the filing, the company has enough cash on hand to reopen and resume operations “this summer or later.”
In an attempt to save the company, AMC plans to eliminate nonessential costs, which include working with landlords to defer or abate certain costs during the pandemic.
Movie theater chains, which faced growing competition from streaming services before the pandemic, may continue to struggle in the short-term as local multiplexes remain closed and studios delay feature releases. In recent years, vacant movie theaters have also become redevelopment opportunities for developers.
[NYT] — Sasha Jones