AMC Theaters likely to file for bankruptcy due to COVID-19 shutdown
AUSTIN, Texas (KEYE) — The world's largest movie theater chain AMC could soon be filing for bankruptcy.
That's according to financial analysts who say AMC was already struggling prior to the outbreak.
Variety says in a report released Thursday, MKM Partners analyst Eric Handler wrote, “Based on our view that theatres will be closed until at least August and our belief that AMC lacks the liquidity to stay afloat until that time, we expect the company will soon be faced with filing for bankruptcy.”
All theaters have been closed since March 16 due to the coronavirus and aren't expected to re-open until August.
By that estimate, AMC would be completely out of money.
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In an effort to cut costs while theaters remain closed indefinitely due to the COVID-19 crisis, the chain furloughed more than 600 corporate employees including CEO Adam Aron, Variety reports.
The theater chain has already told landlords across the country it will stop paying rent in April.
