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AMC Theatres has ‘substantial doubt’ about its future

AMC
In a filing with the United States Securities and Exchange Commission, AMC pointed to the uncertainty surrounding COVID-19.

(WSIL) -- AMC Theatres, the world's largest movie theater chain, has "substantial doubt" it can remain in business after closings its locations due to the coronavirus pandemic.

AMC has theaters in 44 states, including Illinois, Kentucky, Missouri and Tennessee.

On Wednesday, the company said preliminary results showed it lost between $2.1 billion and $2.4 billion for the first quarter of 2020.

In a filing with the United States Securities and Exchange Commission, AMC pointed to the uncertainty surrounding COVID-19.

"The COVID-19 pandemic has had and will continue to have a significant and adverse impact on our business. As a result of the pandemic, all of our theatres worldwide have temporarily suspended operations through late June, and we are generating no revenue from admissions, food and beverage sales, or other revenue, which represent substantially all of our revenue and cash flow from operations. The ultimate duration of the pandemic and of responsive governmental regulations, including shelter-in-place orders and mandated business closures, is uncertain and we may need to extend such suspension with respect to some or all of our theatres. We cannot predict when or if our business will return to normal levels."

The company said it is taking steps to cut costs and preserve cash. It is also seeking benefits under the CARES (Coronavirus Aid, Relief and Economic Security) Act and other potential government programs.

Mandy Robertson

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