AMC Working to Avoid Bankruptcy as COVID Slowdown Continues

 

Theater chain AMC, already in debt due to luxury upgrades to its theaters prior to the onset of the COVID-19 pandemic, is still desperate for cash.

It’s projected that the chain will need $750 million to hit its 2021 cash requirements, meaning an influx of more than $100 million in December and an attempt to sell 50 million more shares, combined with funding from Mudrick Capital Management, are just drops in the bucket.

The chain is among the hardest hit by the spread of the novel coronavirus, which initially forced cinemas to shutter and continued to wreak havoc on theater chains throughout 2020. Consumers simply aren’t prepared to engage in the shared cinema experience yet, even with hope on the horizon in the form of multiple COVID-19 vaccines.

On this MarketScale industry update, hosts Daniel Litwin and Tyler Kern dove into what AMC’s struggles mean for the company and for the industry at large, which will likely need to adapt to bring never-before-seen offerings to the table to get back to a level even close to pre-pandemic attendance.

In particular, dine-in theater experiences will need to adapt to a continued lack of attendance and find unique ways to offer elevated experiences with less staff and heightened peace of mind.

Key Points:

  1. AMC raised more than $100 million in December.
  2. However, the theater chain needs even more cash.
  3. It’s estimated that AMC needs $750 million to reach 2021 requirements.

Follow us on social media for the latest updates in B2B!

Image

Latest

Women's empowerment
Seizing the Narrative: The Transformative Impact of Storytelling on Women’s Empowerment
April 19, 2024

With gender equality becoming a significant global agenda, the narrative around women’s empowerment is more relevant than ever. Amid rising awareness and shifting societal norms, women are increasingly seeking avenues for self-expression and empowerment. A recent study by the Global Gender Gap Report highlights that while progress is being made, substantial efforts are still […]

Read More
V2G technology
Plug into the Future: Decoding V2G for Utility Applications
April 19, 2024

Brian Rudy from Verizon IoT and Melissa Chan of Fermata Energy explore the cutting-edge potential of vehicle-to-grid (V2G) technology at DISTRIBUTECH 2024. Their discussion highlights how this innovation transforms electric vehicles into dynamic energy storage units, capable of stabilizing the grid by storing and discharging power as needed. This technology represents a significant shift […]

Read More
zero trust architecture
Secure Grid Modernization with Zero Trust Architecture
April 19, 2024

Ray Bauer of Verizon Business engages with Del Rodriguez from Palo Alto Networks at DISTRIBUTECH 2024. Rodriguez shares insights into the significance of cybersecurity within the utility sector, particularly in light of increasing cyber threats and the convergence of IT and operational technology (OT). Bauer and Rodriguez discuss Palo Alto Networks’ initiatives to enhance […]

Read More
private wireless networks
Private Wireless Networks
April 19, 2024

Verizon host Wayne Weeks discusses the evolving utility industry with John Gaster, CEO of KSI Data Sciences at DISTRIBUTECH 2024. Together, they explore how KSI focuses on harnessing data from remote sensing devices to enhance the safety, efficiency, and cost-effectiveness of utility operations. Gaster emphasizes the significant role of AI and machine learning in […]

Read More