The World’s Largest Movie Theater Chain Says It’s About to Go Broke

Is AMC about to go under?

Over the last 12 months, AMC Entertainment Holdings Inc, which owns and operates the world’s largest movie theater chain, has seen its stock plummet nearly 60% as a result of the coronavirus pandemic. Now, AMC Theatres is staring at the very real possibility of running out of cash by the end of 2020 or early 2021 if the exhibition industry doesn’t recover in the immediate future.

In a public filing Tuesday, AMC warned that the reduced fourth-quarter movie slate, which has seen major blockbusters such as No Time to Die and Soul depart for 2021 release dates or streaming exclusive releases, will quickly deplete their cash resources. Shares of the company sank nearly 5% in premarket trading Tuesday morning as a result. The company is exploring new sources of liquidity, including adding yet even more debt as well as equity financing and renegotiations with landowners regarding asset sales and lease payments. As the COVID-19 pandemic has revealed, businesses with a large footprint that don’t outright own the land that supports their their brick and mortar operations are exposed.

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