The timing of this news couldn’t be better since studios are moving all of their films into the latter half of 2021 and beyond. Fortunately for AMC Theatres, they don’t have to worry about going into bankruptcy as a result. At least for now.
AMC has raised $917M in funding since December 14th, according to documents released publicly by the company.
“This means that any talk of an imminent bankruptcy for AMC is completely off the table,” AMC CEO Adam Aron said in a press release.
Aron has been one of the most vocal voices against studios sending their blockbuster films to streaming, further jeopardizing the future of theaters.
This additional funding has AMC execs saying they have a new “financial runway” that should keep them afloat “deep into 2021.”
Of course, AMC isn’t out of the woods yet. Everything is still very much up in the air, even with a COVID-19 vaccine out there. Vaccinations have been slow, and customers aren’t willing to buy very many tickets just yet. Basically, this year could look a lot like 2020 and theater owners are going to be struggling. Even with this money, AMC will need to reexamine their business model in this brand new world we’re living in.
Keep in mind, other exhibitors continue to be on dire straits, as well, so while it’s good news that AMC is in a better position, the future of the business remains in question. [THR]
