Coronavirus May Have Put The World’s Leading Theatre Chain Out Of Business
The novel coronavirus pandemic has led to thousands of deaths and has debilitated an already staggering global economy. With businesses being closed indefinitely due to the lockdowns, nobody is quite certain when the economy will stabilize. Now, according to media reports, COVID-19 may have put the world’s largest theatre chain out of business.
According to Indiewire, AMC Theatres told regulators that they do not when businesses will return to normal and stated that loans may not be enough to stabilize their financial needs.
“We may not be able to obtain additional liquidity and any relief provided by lenders, governmental agencies, and business partners may not be adequate and may include onerous terms,” the 8K filing stated. “Due to these factors, substantial doubt exists about our ability to continue as a going concern for a reasonable period of time.”
Indiewire further reports that AMC Theatres operates 996 theatres and 10,993 screens in 15 countries. In the US alone, the theatre chain has 630 theatres with 8,048 screens.
In January, February, and March, AMC reported a loss of somewhere between 2.12 billion dollars to 2.42 billion dollars.“If we do not respond appropriately to the pandemic, or if customers do not perceive our response to be adequate, we could suffer damage to our reputation, which could significantly adversely affect our business,” the filing stated.