AMC Theatres casts doubt on remaining in business

AMC Theatres may not be able to survive the coronavirus shutdowns, the company revealed in its latest regulatory filing.

The company, the world’s largest movie theater chain, told the Securities and Exchange Commission that it had “substantial doubt” it could withstand the reopening process, despite securing credit lines and restructuring debt to help it endure the current landscape.

AMC acknowledged as causes the uncertainty around the timing of reopenings, the altered capacity quotas many locations will face, and the reconfigured calendar for new releases. With 40% of ticket sales typically going to customers over the age of 50, who may be slow to return to a crowded movie theater, the company needs to work toward an operating model that can keep its doors open.

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