Cinemas are reopening across the country, but that may not be enough to save some of the largest cinema operators.
AMC Entertainment Holdings, one of the world’s largest cinema operators, said it could run out of cash by the end of the year if it did not find other sources of liquidity, Reuters reported.
The company said on Tuesday that “there are significant doubts about the company’s ability to continue to operate for a reasonable period of time.” It will issue shares in order to raise funds, but also said it may have to restructure its debt.
AMC according to Reuters, visitors to its cinemas recorded a decrease of 85 percent compared to last year.
A pandemic has turned cinemas. Although some chains, including the AMC, have reopened theaters, viewers remain skeptical about returning to the theaters due to fears of a virus contract.
Hollywood studios are also holding back major releases until next year, including MGM / Universal’s new James Bond film “No Time to Die,” which gives people less motivation to go to the movies.
Recently competing AMC Cineworld announced after opening its cinemas, it will temporarily close its 663 theaters in the USA and England.
[Reuters] – Keith Larsen