The world's largest theater chain could run out of money by the end of the year, illustrating how dire the situation is for the movie theater industry.
AMC Theatres said Tuesday that its existing cash resources would be"largely depleted" by the end of 2020 or early 2021 because of the"reduced movie slate for the fourth quarter," as well as"the absence of significant increases in attendance from current levels."The company said it has two ways out of its cash crisis: Either more customers need to buy tickets, or it will have to find new ways to borrow money. Getting butts in seats has proven a major challenge.
Read More"There is a significant risk that these potential sources of liquidity will not be realized or that they will be insufficient to generate the material amounts of additional liquidity that would be required until the company is able to achieve more normalized levels of operating revenues," AMC said. AMC's stock fell about 6% Tuesday.Movie theaters are struggling to survive the pandemic.
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