AMC Theatres: We Might Not Be Able To Stay In Business
The parent company of Rockford's ShowPlace 16 and Machesney Park's ShowPlace 14, is the largest movie theater chain in the world.
And, according to a new report, they're in danger of closing up shop permanently due to the massive losses brought about by the COVID-19 lockdown and subsequent closures of their theaters.
The theater chain expects to have lost $2.1 billion to $2.4 billion in the first quarter ended March 31. It will release its earnings on Tuesday.
AMC also revealed that its revenue had fallen to $941.5 million, a nearly 22% drop from the $1.2 billion it garnered in the same quarter last year. The second quarter is expected to be even worse.
“We are generating effectively no revenue,” the company said in its filing.
AMC Theatres, in a statement:
We cannot assure you that our assumptions used to estimate our liquidity requirements will be correct because we have never previously experienced a complete cessation of our operations, and as a consequence, our ability to be predictive is uncertain. If we do not recommence operations within our estimated timeline, we will require additional capital and may also require additional financing if, for example, our operations do not generate the expected revenues or a recurrence of COVID-19 were to cause another suspension of operations. Due to these factors, substantial doubt exists about our ability to continue as a going concern for a reasonable period of time.