Theater chain AMC warns that it's running out cash https://t.co/YqE1ErMxWj— CBS News (@CBSNews) October 13, 2020
AMC Theaters has put on a dire call to investors: it's running out of money and could have none by the end of the year or early 2021.
In a government filing posted today, the theater chain has stated that while 83% of its theaters are back open, attendance has dropped 85% and its cash resources will run out quickly unless attendance significantly increases. But with the 4th quarter empty of major film releases, the chain is now moving to renegotiating its building leases, selling off assets, and taking part in other cost-cutting measures to stay afloat.
Earlier this month, S&P Global downgraded the chain's credit rating and stated itself the chain would run out of money within the next 6 months.
The chain's stock dropped 13% to $3.54, its lowest value since late-April.
Small and mid-sized chains have pleaded to the government for aid, stating they would be on the verge of bankruptcy and going out of business without it.