Last Updated on November 5, 2022 by admin
The Troubled History of AMC Entertainment
AMC Entertainment has been in trouble for years, even before the COVID-19 pandemic struck. The company was founded in 1920 and quickly became one of the largest movie theater chains in the world. However, over time, AMC fell behind its competitors and failed to keep up with changing technology and consumer tastes. As a result, AMC found itself increasingly struggling to maintain its market share.
The pandemic has only made matters worse for AMC. When theaters were forced to close their doors back in March, AMC was suddenly left with no source of revenue. The company has been bleeding money ever since, and there is no end in sight to the crisis. With its debt piling up and no way to generate income, bankruptcy became an increasingly likely possibility for AMC.
AMC Tries Desperate measures to Survive
In order to stay afloat, AMC has been taking desperate measures. The company has sold off some of its most valuable assets, including its stake in Carmike Cinemas and its headquarters building in Kansas City. It has also raised billions of dollars through debt financing. However, these measures have only bought AMC some time; they have not solved the underlying problems facing the company.
With its back against the wall, AMC has now turned to selling stock as a last-ditch effort to stay in business. Only time will tell if this move will be enough to keep the company afloat or if it will ultimately be the nail in AMC’s coffin. Either way, one thing is certain: this is a dark time for movie theaters, and it remains to be seen whether any of them will survive the COVID-19 pandemic intact.
AMC isn’t alone in its struggles; many other movie theater chains are also facing bankruptcy amid COVID-19 shutdowns (source). Cinemark Holdings Inc., Regal Entertainment Group ,and IMAX Corporation are all struggling to stay afloat (source). This is bad news for movie lovers everywhere, as it seems increasingly likely that we will see fewer movie theaters emerge from this crisis than we did going into it.