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

1 month 2 days 21 hours ago Wednesday, June 03 2020 Jun 3, 2020 June 03, 2020 12:28 PM June 03, 2020 in News
Source: CNN

The world's largest movie theater chain says its future is uncertain after the coronavirus outbreak forced it to close its doors for months.

According to CNN, AMC Theatres expects to have lost between $2.1 billion and $2.4 billion in its first quarter.

"We are generating effectively no revenue," the company said in a regulatory filing Wednesday.

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.

AMC says it is monitoring the lifting of government restrictions but added that it is facing serious hurdles even after those limitations are removed.

"Even if governmental operating restrictions are lifted in certain jurisdictions, distributors may delay the release of new films until such time that operating restrictions are eased more broadly domestically and internationally, which may further limit our operations," the company said.

The coroanvirus has derailed the movie industry in 2020, forcing the delays of tent pole summer movies like 'Wonder Woman 1984', 'Mulan', and 'F9'. 

AMC also found itself in a combative back-and-forth with Universal Pictures after the company opted to release 'Trolls World Tour' on digital platforms rather than waiting for theaters to reopen, with the chain claiming it would no longer show Universal films.

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