Analysts Says AMC Theaters Heading For Bankruptcy
The ongoing COVID-19 shutdown is hitting many businesses hard. Among these are major movie theater chains which have had to shutter to combat the spread of the virus. It should be expected given the huge cuts to revenue and employment that many businesses may not recover from the financial hit and according to a recent report, AMC Theaters may be one of them.
The popular cinema chain with theaters at both Disney Springs (Disney World) and Downtown Disney (Disneyland) has been closed for over a momth and has furloughed all 600 of its corporate staff including the company’s CEO Adam Aron. As a result, one analyst is arguing that AMC may have to go to drastic measures to make a comeback after the outbreak’s decline.
Image: Disney
According to a recent post in ComicBook.com, Wall Street Analyst Eric Handler is sharing his predictions for the company and said that it’s almost guaranteed that AMC will be forced to file for Chapter 11 Bankruptcy. This is something that we have already seen happy at another Disney Springs location- Ample Hills Creamery at the onset of the outbreak.
In a Thursday report, the Handler stated:
Based on our view that theaters will be closed until at least August and our belief that AMC lacks the liquidity to stay afloat during that time, we expect the company will soon be faced with filing for bankruptcy. Further fueling our liquidity concerns is AMC’s decision to stop paying rents to landlords.
Image: Disney
Along with the closure of the theaters, film studios are scrambling to figure out what to do with their films slated to open in Spring/Summer of this year! Disney recently announced the adjustment of their big releases like Black Widow and Mulan which have been moved to later this year. They also shared the news that Artemis Fowl will be going straight to their Disney+ streaming network.
So, even if the theaters do open sooner rather than later, there may not be many titles available to screen at cinemas. We of course hope that Disney continues to benefit from having AMC’s iconic theater locations at both Disneyland and Walt Disney World. This is a story we’ll be following closely so keep checking in with us for further news and updates!
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Source: Comicbook.com
