The world’s largest film channel has warned it could run out of money by the end of the year, citing a plunge in films shot and film releases delayed amid the coronavirus pandemic.
Despite reopening the majority of its theaters, AMC Entertainment Holdings said attendance remained down 85% in the United States and 74% elsewhere.
AMC says it wants to raise funds.
The warning follows the recent decision by rival Cineworld to temporarily shut down its cinemas in the US and UK.
AMC, which previously said it spends around $ 100 million per month, told investors it expected its cash “to be largely depleted by the end of 2020 or early 2021.”
The amount of money needed is “material,” the firm added.
“There is a significant risk that these potential sources of cash will not materialize or be insufficient to generate the significant amounts of additional cash that would be required until the company is able to achieve revenue levels. more standardized operations, “the firm warned in a filing with US financial regulators.
“ We could lose cinema forever ”
AMC, which is controlled by Chinese conglomerate Dalian Wanda Group, operated more than 1,000 theaters around the world before the pandemic.
While most of them are in the United States, it also has more than 300 international locations through its subsidiaries Odeon and UCI Cinema.
In the United States, restrictions due to the virus have limited theater capacity to 20% -40%. And in some key markets, like California and New York, the company’s theaters have yet to reopen.
The industry has also been rocked by decisions to postpone the release of big budget films such as Wonder Woman 1984 and the James Bond film No Time To Die, which is now due for release in April 2021.
In a recent interview, Wonder Woman director Patty Jenkins warned that the cinema faces a real threat of extinction.
“If we stop this, it won’t be a reversible process,” she said. “We could lose the cinema forever.”