It Looks Like Imminent Bankruptcy Is Off the Table for AMC Movie Theaters
Many industries were hit hard due to the coronavirus pandemic. As lockdowns started and businesses suddenly found themselves closed indefinitely, sales came to a screeching halt.
While some businesses, like restaurants and stores, were able to shift to offering take-out, delivery and curbside pickup options, other industries found themselves limited in what they could offer. For example, while drive-in movie-theaters popped up in parking lots, indoor theaters were left empty.
With many movie theaters closed, some movies were released on streaming services like Disney+ instead of on the big screen as was originally planned. While we enjoy being able to watch new releases from the comfort of home, it’s hard not to wonder if streaming services are going to cause a huge decline in movie theater attendance long term.
AMC is one movie theater chain that was struggling throughout the pandemic. It was rumored that the chain was going to file for bankruptcy, but that is officially not going to happen, at least not in 2021.
AMC CEO Adam Aron said, “Any talk of an imminent bankruptcy for AMC is completely off the table.”
Why is Aron so confident? The company has secured $917 million in debt capital and new equity since December 14, 2020. This positive news caused the company’s stock to go up 20%.
In order for AMC to remain open in 2022 and beyond, the company is banking on vaccinated people feeling safe to return to movie theaters again. They are also assuming people will want to go to movie theaters instead of watching movies on streaming services.
According to Aron, “Looking ahead, for AMC to succeed over the medium term, we are going to need for much of the general public in the U.S. and abroad to be vaccinated. We welcome the commitment by the new Biden administration and of other governments domestically and internationally to a broad-based vaccination program.”
For more about the latest news from AMC, watch the video below.
Are you planning to return to movie theaters sometime this year? What was the last movie you saw in a theater? If a movie were released on a streaming service and in theaters at the same time, which way would you choose to watch the movie? Do you think movie watchers will return to theaters after getting vaccinated?