NBC: The world’s largest movie theater chain said Wednesday it has “substantial doubt” it can remain in business after shuttering all of its locations during the coronavirus pandemic.
In April, AMC Theaters said a new debt offering would allow the company to withstand these closures until a partial reopening ahead of Thanksgiving. However, in a filing with the Securities and Exchange Commission the company disclosed concerns about liquidity, its ability to generate revenue and the timeline of reopening its theaters.
In that filing, AMC released preliminary earnings results. 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. more