It's no secret that businesses across the country have taken financial hits since the coronavirus pandemic ramped up in mid-March and movie theater giant AMC has found itself on that list.
CNN reported that AMC Theaters said on Wednesday that they have "substantial doubt" that they'll be able to stay in business following the pandemic. The company estimated that they've lost between $2.1 and $2.4 billion and that compared to this quarter last year, they are down 22%.
"We are generating effectively no revenue," the company said in a regulatory filing.
While they are monitoring the potential of re-opening their doors to the public in compliance with the government's regulations, they are conscious of other obstacles in front of them.
"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. "We believe we have the cash resources to reopen our theatres and resume our operations this summer or later," AMC said. "Our liquidity needs thereafter will depend, among other things, on the timing of a full resumption of operations, the timing of movie releases and our ability to generate revenues."
An additional challenge they face is digital streaming. When Universal's Trolls World Tour opted to skip a theatrical release in favor of going directly to streaming, a rift was caused between AMC & the film studio which led to the theatre mogul banning Universal's movies from their theaters.
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