AMC Theaters Expects to Run Out of Cash By End of 2020
AMC Theaters announced to the public Tuesday that they will be forced to close if their customer’s numbers don’t rise. The company estimates that if the numbers don’t increase, they will have to close down as early as the end of 2020 to the beginning of 2021.
Since the recent reopening of 494 of their 598 locations, attendance numbers have dropped 85% compared to the company’s numbers prior to their closings amid the coronavirus pandemic. Some locations, such as the companies LA and NY ones, have still yet to reopen due to the virus. Regardless, although the majority of the company’s locations have been able to reopen, space in the theaters are limited due to social distancing regulations.
In addition, many new releases that the company had relied on to attract more viewers, such as “Soul” and “No Time to Die”, have either been delayed or moved into streaming platforms, surpassing theaters.