AMC Theaters Unlikely to Survive the Movie Theater Shut Down

[The Deadman]

We all know that movie theaters have been hurting since they were forced to close down over the coronavirus pandemic. There was also a fear that some movie theaters might not be able to make it out of this alive. It looks like one of the big movie theater chains is sweating it, and according to The Wrap, they are unlikely to survive.

It’s reported that AMC Entertainment's credit rating has been downgraded from a 'B' to 'CCC-,' and what that means is that "Default imminent, with little prospect for recovery." Analyst S&P Global confirms:

"We expect AMC Entertainment Holdings Inc.’s (AMC) theaters will remain closed beyond June due to the impact of the global coronavirus pandemic. We do not believe AMC has sufficient sources of liquidity to cover its expected negative cash flows past mid-summer."

AMC is in major debut as it reported a $5+ billion deficit at the end of 2019 and losses of $149 million. The analysts continued:

"While unlikely, we could raise the rating if AMC were able to secure additional liquidity without further burdening its capital structure and if we expected the company would be able to generate substantial cash flow in 2021. This would likely require conclusive knowledge about the length of the theater closures and a view that the box office would return to normalized levels in 2021."


https://geektyrant.com/news/amc-thea...ater-shut-down

[Coola Yagami]

I wonder why. People would be flocking to theaters once everyone is allowed to go back outside again.

[IMJ]

From a human perspective, it's ashame because there are jobs at play. But also consider that there are more P/T "High School" jobs at AMC than there are people paying mortgages by working there.

With that said, from a competitive stand point, AMC deserves to die on the vine anyway. The chain has been surpassed completely by other theaters such as Brew 'n Views (like Studio Movie Grill) or successful local theaters that offer food and enhanced theater rooms like Naperville, IL's Hollywood Palms which has each showroom decorated according to a theme (i.e., one room is Egyptian with a life sized ark of the covenant while another has life sized Iron Man, Batman, etc).

The point is that AMC was dying from their business practices and pricing. I'd expect the current climate could hasten the process, but that chain was being selected out by movie goers through voting dollars anyway.

[ranger_scout]

Actually the company has been having some really good days at the Stock Market this week. Monday was especially GREAT.

Showbiz Stocks Surge From Theater Chains To Broadcasters On Glimmer Of Market Hope Pandemic Is Running Its Course

I also read this yesterday.

AMC Theatres Bankruptcy Rumors Grow, But That Move Wouldn’t Be The End Of The Chain Or The Biz

[IMJ]

Originally Posted by ranger_scout

Actually the company has been having some really good days at the Stock Market this week. Monday was especially GREAT.

Showbiz Stocks Surge From Theater Chains To Broadcasters On Glimmer Of Market Hope Pandemic Is Running Its Course

I also read this yesterday.

AMC Theatres Bankruptcy Rumors Grow, But That Move Wouldn’t Be The End Of The Chain Or The Biz

Actually? Context is king, dude. Jesus, did you even read your article?

Originally Posted by cited article:

wouldn’t be shocked if AMC files Chapter 11 in the near future, that’s not necessarily a scarlet letter for the biggest theater chain in the world. Rather it’s the best thing that could happen for AMC which is saddled with $4.9 billion debt and currently valued at $327.3M.

AMC sucks. The main point of the article isn't that it's doing well... hahaha Jesus. It's that AMC could benefit from their inevitable bankruptcy through restructuring, which is a function of bankruptcy. Your cited source also actually says that the death of AMC isn't also the death of theaters, which is actually also what I said above. That article basically says that AMC inevitable downsizing might help the company. Which is true of any company dying on the vine.

And as for your first article, lmao again . Dude, having a whopping 25% increase isn't that hard when your share price is only $3.30 a share..

Actually...

[TigerClaw]

I really hope they don't shut down completely. I been going to this same theater for many many years. I would hate to lose it since its the only theater that was close enough.

[raph27]

Personally I wouldn't mind this, as long as it doesn't mean theaters tanking overall. I've never liked AMC for a multitude of nitpicky reasons, they're my least favorite theater chain.

Unfortunately, if they're going away then I fear for the rest of the bunch.

[Coola Yagami]

Oddly enough I never particularly cared for like a specific theater per say. I'm in it for the movie, the food and the chance to hang out with the gang. Sure, some theaters might have reclining seats or other might offer unlimited popcorn, but in the end the only factor for me is convenience of location, not so much the actual name of the theater chain.

[TigerClaw]

The theater I been going to went through different owners.

It started out as United Artist Theater, Then became Muvico Theater, Then got owned by Carmike Cinema. Then Carmike Cinema got bought by AMC Theaters.

[ranger_scout]

The company's shares are now showing a spike following plans to reopen the economy.

AMC Issues $500M In Debt To Stay Liquid; Shares Spike On U.S. Reopening Plan

[ranger_scout]

The company has now been upgraded from "Sell" to "Neutral". Plus, "Bankruptcy risk appears to have subsided.”

https://deadline.com/2020/05/amc-ent...ed-1202944170/

[IMJ]

AMC shares were at a low of a buck ninety five, but are now hovering at 5.35. It's great that their leadership actually developed a plan, but their share price bounced on the fact that an investing group put all sorts of money into the company - which is good.

But surviving the fallout after being saved by investors and credit deals is different then surviving by market competition. It's impressive that they bought themselves maybe two to three years, but I'm most interested in seeing if they can do big things to make AMC a theater where people want to be again.

Originally Posted by raph27

Unfortunately, if they're going away then I fear for the rest of the bunch.

Nah, you don't have to worry. The resurgence of "novelty theaters" that offer real menus and dinner with leather recliners and other amenities have kept the theater experience fresh. AMC needs to adapt now that they've taken in investor money.

[Andrew NDB]

SOME of the AMCs out here have the leather recliners, at least.

Regal? They all have those. And a ridiculously large menu of food.

[ranger_scout]

They could certainly use this during these times.

AMC Entertainment Nears Debt Deal That Would Ensure Solvency Into Early Next Year

[ranger_scout]

They just completed their debt restructuring.

https://comicbook.com/movies/news/am...restructuring/

[ssjup81]

I feel bad for the theaters, mainly because of the jobs people are losing because of them. I know I personally would rather go to a theater to watch a movie than to sit at home and watch one, unless it's an older film...not something newly released that I may have an interest in. I like the atmosphere of the theater, but I also feel that I'm in the minority in that regard who still prefers this medium of entertainment.

I generally don't buy the snacks, though since I usually do dinner and a movie. So I'd get something to eat either before or after the movie (usually after). I might get a drink or something, though.

Wish everything could go back to semi-normal at least across the board. I miss seeing movies in an actual theater and sad that Ghostbusters was pushed back along with other films I had an interest in seeing.

[Andrew NDB]

Don't worry, it will all go away after the election.

[CylonsKlingonsDaleksOhMy]

Originally Posted by Andrew NDB

Don't worry, it will all go away after the election.

Yeah, pretty much. Every 4 years SOMETHING hits the fan.

[Papenbrook]

Well, it looks like AMC could be bought off pretty soon.

[ranger_scout]

AMC Theatres Could Run Out of Cash by the End of 2020, Early 2021