AMC Theaters Could Be Out Of Money By End Of Year
AMC THEATRES WARNS INVESTORS IT COULD RUN OUT OF MONEY BY THE END OF 2020 OR EARLY 2021, IF PANDEMIC TRENDS CONTINUE
(CNN) – AMC Theatres is warning it could run out of money by the end of this year or early next year, if pandemic trends continue.
The world’s largest theater chain says that’s because of the reduced slate of movies in the fourth quarter and no significant increases in movie attendance.
AMC says as of October 9th, it had reopened 494 of its nearly 600 U.S. theaters, at a seating capacity between 20% and 40%.
Even so, attendance is down 85% compared to last year.
The company said it has two ways out of its cash crunch: Either more customers need to buy tickets, or it will have to find new ways to borrow money.