Cinema chain AMC warns it may not survive the pandemic

published 03.06.2020 22:41

Image of article 'Cinema chain AMC warns it may not survive the pandemic'

Since the pandemic shut down theaters, entertainment companies have delayed most movies.

AMC believes that desire for social distancing is temporary and that people will want to go to the movies again.Apart from the pandemic and its economic aftershocks, the movie business in the U.S. and Canada has benefited from rising ticket prices, but admissions have been gradually declining since 2005.

But if it’s not allowed to reopen, it will need more money, which it may not be able to borrow.AMC operates almost 30 movie theater complexes in the Chicago area, many of them outfitted with more than a dozen screens, according to its website.The company said that even when local governments allow theaters to reopen, AMC may still have problems if entertainment companies delay releasing new films.

Movie theater chain AMC warned Wednesday that it may not survive the coronavirus pandemic, which has shuttered its theaters and led film studios to explore releasing more movies directly to viewers over the internet.All of AMC’s theaters are shut down through June, which means the company isn’t generating any revenue.

It's the largest U.S. theater chain.Cinemark, another major movie chain, plans to begin reopening U.S. movie theaters on June 19.