Thursday, March 28, 2024

AMC Entertainment Running Out Cash, Offers Theater Rentals for $99

*As the theater business continues to be impacted by the coronavirus pandemic, AMC Entertainment has warned it could run out of cash by year-end. 

Here’s more from MSN

According to AMC, 494 of its 598 theaters are open. But locations in California, Maryland, New York, North Carolina and Washington, which would normally generate a quarter of the company’s annual revenue, remain closed.

AMC hopes to reduce financial losses by raising cash and cost-cutting measures. For example, AMC is seeking to renegotiate building rents with landlords and considering taking out a loan. Over the last 12 months ending in June, the company reported a net loss of $2.8 billion on revenue of $3.7 billion.

“There is a significant risk that these potential sources of liquidity will not be realized,” the company said. 

READ MORE: AMC Theaters Ban Universal Films After ‘Trolls World Tour’ Earns $100 Million in Rentals

“At the existing cash burn rate, the company anticipates that existing cash resources would be largely depleted by the end of 2020 or early 2021,” AMC said in its filing. “Thereafter, to meet its obligations as they become due, the company will require additional sources of liquidity or increases in attendance levels.”

AMC Theatres is trying to lure moviegoers back by offering full auditorium rentals nationwide (except for DC) for private groups of 20 people or less. The cost ranges between $99 and $349, depending on the movie and theater location, per washingtonian.com

The price doesn’t include concession snacks and there’s a $250 catering fee if you want to bring your own food. Masks are required during screenings.

Find a full list of participating theaters here.

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