While AMC Theatres, Regal Cinemas, and other major theater chains were hoping that 2021 would usher in a return to “normalcy” when it comes to people heading out to the cinema to watch a film on the big screen, it’s clear that’s not happening. In fact, we’ve seen studios already announce more delays that see most major films moving to the second half of 2021, indicating that theater chains are in for another rough six months, at least. But for AMC, the company has finally found financial security enough to claim that bankruptcy isn’t on the table…for now, at least.
According to THR, AMC Theatres has secured $917 million in new financing since mid-December. This gives the company enough financial leeway to try to make it through the tough times ahead this year.
“This means that any talk of an imminent bankruptcy for AMC is completely off the table,” said AMC CEO Adam Aron. “Today, the sun is shining on AMC.”
The theater chain claims that this new funding allows the company to breathe easy this year, and its “financial runway has been extended deep into 2021.”
Does this mean that AMC is completely out of the woods? Of course not. All that we know now is that the chain isn’t on the verge of bankruptcy and that it’s bracing for a 2021 that might echo what we saw last year. Meaning, the company is expecting not a lot of tickets sold over the next six months, at least.
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Also, the money alone isn’t a guarantee that AMC will be financially secure. The company said there still needs to be “ongoing dialogue with theater landlords about the amounts and timing of owed theatre lease payments.” And the hope is “an increase in cinema attendance seems likely” once the COVID-19 vaccine becomes more prevalent over the forthcoming months. That said, AMC is quick to mention “no one knows for sure the future course of this and other strains of the coronavirus.”
Regardless, if you were someone wondering if the entirety of the movie theater business was on the verge of collapse, it appears that’s not necessarily the case. While other chains are still in trouble, and AMC is clearly not saved completely, there are still plenty of independent theaters that are struggling to pay the bills and might face closure. And if studios continue to delay all the major films deeper and deeper into 2021 and 2022, who knows what is going to happen?