by Nick Hamilton (@NickHamiltonLA)
NEW YORK, NY– The AMC Theaters have been shut down in the wake of the CoronaVirus pandemic that have forced many to stay quarantined inside, for an unknown period of time to prevent the spread of the virus.
With the theater chains being closed until at least August, AMC may have to file bankruptcy due to lack of liquid assets available to keep the theater chain afloat. According to Variety, AMC reported $265 million cash and $332 million in credit lines as of December 31, 2019.
In an effort to save costs, the country’s largest movie chain furloughed over 600 employees and CEO Adam Aron. The theater chain haven’t paid rent since the beginning of April since the theaters remained closed.
With the theater chain not paying rent will enable them to be able to stay afloat longer than expected, yet without any type government assistance AMC could see themselves deep in an abyss of financial peril with no possible return.