Following the lock-down, AMC Theaters suffered financially like any other company. However, AMC got so low that it became bankrupt. But the good news is, the company has recovered from bankruptcy. Read ahead to know more!
What is AMC Theaters?
AMC Theaters, as the name suggests, is a renowned American movie theater chain. The company is headquartered in Leawood, Kansas, and is recognized as the largest movie theater chain in the world. Certainly, it has the largest share in the U.S. theater market, followed by Regal and Cinemark Theaters.
AMC Theaters was founded in 1920 as American Multi-Cinema. Years later, the company acquired Odeon Cinemas, UCI Cinemas, and Carmike Cinemas in 2016. Consequently, it became the largest movie theater chain worldwide as well as in the US. As of today, AMC Theaters has 2,866 screens in 358 theaters in Europe and 7,697 screens in 620 theaters in the US.
AMC Theaters go Bankrupt
AMC Theaters has always enjoyed great viewership and audience throughout its theaters world-wide. However, when the COVID-19 pandemic hit, all AMC Theaters were temporarily closed as provided by the CDC guidance. It even laid off all of its 600 workers temporarily. Nonetheless, it got back into operation in August 2020.
AMC Theatres is likely to go bankrupt, according to Wall Street analysts https://t.co/Ts4SvYjIyl pic.twitter.com/cTJrsxiHHX
— Variety (@Variety) April 10, 2020
Meanwhile, AMC Theaters also announced that they would no longer carry films from Universal Pictures and NBCUniversal. Later in June 2020, AMC announced that they were doubtful about remaining in the business after closing due to pandemic. However, Universal and AMC managed to restore relations by July 2020. Finally, in August, AMC began gradual re-opening in the selected locations with upgraded air filtration systems and electrostatic sprayers. However, due to lack of audience, the company reported that it’s existing fortune “would be largely depleted by the end of 2020 or early 2021.” Moreover, AMC’s chief financial officer, Sean Goodman, also warned investors about the significant risks. He said, “Our ability to be predictive is uncertain due to the unknown magnitude and duration of the COVID-19 pandemic.”
AMC Theaters saved from Bankruptcy
Recently in January 2021, AMC announced that “Bankruptcy is off the table”. Apparently, AMC signed $917 million in deals to help the company with financial trouble brought upon by the COVID-19 pandemic. The company said it raised new equity worth $506 million by issuing 164.7 million new common shares. Moreover, AMC Theaters has also executed a commitment letter for $411 million in debt by refinancing a European revolving credit facility.
Last year I was genuinely worried that AMC Theatres would be bankrupt right now and I am super happy that is not the case. Theaters are weathering the storm. https://t.co/YlS2y46w4b
— Eli Sanza (@ejunkie2014) January 25, 2021
The AMC Chief Executive, Adam Aron said, “Clearly this is a great day for AMC. We are very optimistic about the future of movie-going once the pandemic is somewhat behind us and once new movie titles are released again, but we’ve been burning through cash as we wait for that bright new day to come. We now have the cash to survive.” Moreover, AMC is going to reopen 35 more movie theaters across Illinois Friday.
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