The Coronavirus pandemic has changed the economy greatly, and the road to recovery may not be that easy for a lot of businesses. One of the franchises, AMC Theaters, is likely to be over and done with.
An analyst from MKM Partners released a report about the possibility of AMC Theaters surviving after the pandemic, ultimately concluding that the company is losing the funds needed to stay alive. He feels that the company is going to have to file for bankruptcy.
Farewell To AMC Theaters?
AMC Theaters has about $265 million in cash and $332 million in lines of credit available. It looks like the company’s shares have dropped a lot on Thursday. The company didn’t respond to comments about the drop. It looks like even with the bailout money, AMC will have a hard time coming back from the brink.
AMC is the largest movie theater chain in the nation and because of the pandemic has had to furlough 600 corporate employees including the CEO of the company. The company has also let the landlords of the buildings where their theaters are, they will be able to pay rent since the cinemas are shut down.
These details show that even a large chain like AMC has been damaged by this virus pandemic and the employees are suffering and may not have a company to come back to.
Do you think the company will be able to pull through? Let us know your thoughts in the comments below, and make sure you keep up with The Illuminerdi for movie news and features.