AMC Theatres could run out of money by the end of the year unless the company can find additional streams of income and ultimately convince people that it is safe to come back to the movies, according to reports.
AMC Entertainment Holdings Inc. has so far reopened 494 of its 598 U.S. cinemas after being shuttered for much of the year due to the coronavirus pandemic.
Attendance is down about 85% when compared with last year, while seating has been limited to between 20% and 40% of capacity because of public health restrictions, The Wall Street Journal reported.
A reduced slate of new blockbuster films is also impacting business, along with limited operating hours.
Warner Bros. delayed releasing “Wonder Woman 1984” until Christmas, and MGM won’t release the new James Bond flick “No Time to Die” until April 2021.
Another major U.S. theater operator, Regal Entertainment, reopened in August but suspended operations last week, citing a lack of new releases.
Without additional revenue, the Kansas-based AMC would likely burn through its cash reserves by the end of 2020 or early next year, the company said in a statement. To raise extra cash, the company said it would consider debt or equity financing, asset sales, renegotiations of lease payments and possible joint ventures, the Journal reported.
So far, AMC has raised about $37.8 million through an offering of approximately 9 million shares, according to the Hollywood Reporter.
Some AMC locations in New York and California that raked in 23% of the company’s 2019 U.S. revenue remained closed as of this week, the Journal reported.
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