AMC Theaters May Run Out of Cash By The End Of 2020
AMC Theaters is in danger of running out of cash by the end of the year, the company said in a new filing with the Securities and Exchange Commission, causing its stock to drop by nearly 13% on Tuesday.
The theater chain, which is the largest in the world, said on Tuesday that its “existing cash resources would be largely depleted by the end of 2020 or early 2021.” The company says that it will require additional sources of money or increases in attendance levels to continue.
This news follows just a week after Cineworld announced the temporary closure of all Regal theaters in the United States and the United Kingdom. AMC said in the SEC filing that “major movie releases that were previously scheduled to be released in the fourth quarter have either been rescheduled for 2021 or slated for direct to streaming in lieu of a theatrical release, leaving a reduced slate of movie releases for the remainder of the year,” further exacerbating the chain’s existing problem. The final straw for Regal seemed to be the delay of No Time To Die, the latest James Bond movie, to April 2021.
AMC’s announcement is just the latest in a string of changes in the movie world. AMC lashed out at Universal when the studio decided to release Trolls: World Tour directly to streaming services, and Disney recently announced a major re-org centered around its Disney+ streaming service.
Image credit: Getty Images/Noam Galai
Source: Read Full Article