AMC has one theater in Naperville, another 50 in Illinois, and the company warns all of them may soon close.
In a regulatory filing released June 3, the company states:
During this period, we are generating effectively no revenue.
With the COVID-19 pandemic forcing theaters across the country to shutter their doors, AMC’s Illinois locations will remain closed through the end of June. Additionally, July does not bring with it the promise of brighter days.
We will continue to monitor the potential lifting of various government operating restrictions, or whether such operating restrictions are extended with respect to some or all of our theatres.
Already facing a decline in revenue and foot traffic for more than a decade, AMC is facing adversity on multiple fronts. Consumer behaviors have shifted, resulting in movie studios altering their distribution methods.
With the COVID-19 pandemic closing theater doors, many studios have opted for direct-to-home releases. Theaters are also under pressure from major entertainment companies such as Netflix and Disney, as their streaming services are increasingly aiming to produce and acquire films for at-home release.
While the company states it has enough cash to open it’s theaters if guidelines allow it at the end of June, AMC still has to weather delayed movie production schedules and a customer base that is potentially weary of gathering in large, indoor spaces.
More from the filing:
We believe we have the cash resources to reopen our theatres and resume our operations this summer or later. Our liquidity needs thereafter will depend, among other things, on the timing of a full resumption of operations, the timing of movie releases and our ability to generate revenues. We cannot assure you that our assumptions used to estimate our liquidity requirements will be correct because we have never previously experienced a complete cessation of our operations, and as a consequence, our ability to be predictive is uncertain.
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