AMC Theatres Closing In On Bankruptcy Reports Reveal
The Hollywood Reporter revealed earlier today that Wall Street analysts are speculating on the upcoming bankruptcy of AMC Theatres. Eric Handler, from MKM Partners, decreased his rating on the shares of the theatre from "neutral" to "sell," arguing that the company looks like it's headed for Chapter 11 bankruptcy.
The news comes after Loop Capital analyst, Alan Gould, said the same thing. Moreover, he argued that it looked like the company would either go bankrupt or would require "highly-dilutive financing."
Handler said on Thursday that due to the fact AMC likely doesn't have enough money to keep the business open until August, they think the theater will have to close its doors permanently. Furthermore, it was reported that AMC was going to stop paying their landlords in April.
Back in March, AMC made several decisions to reduce some of their expenses, including the removal of 600 of their corporate employees, for instance, the CEO, Adam Aron, and also cutting their dividend by around 85%. As it was previously reported, movie theaters and concerts were among the first to shut down amid the coronavirus pandemic.
The United States government started clamping down on the virus back in March, with their efforts only intensifying as the situation worsened. Other entertainment industry businesses were hit hard as well, including Coachella Valley Music and Arts Festival, Cannes Film Festival, and South by Southwest Film Festival.
Additionally, networks such as NBC revealed they were shutting their doors for the foreseeable future and would no longer be working on 35 of their productions.
Other television programs had to close down their studios, especially those with live audiences like The Ellen DeGeneres Show, The Wendy Williams Show, and Watch What Happens Live With Andy Cohen, among many others.
With that said, many of the late-night hosts chose a different medium of continuing with their programming: video chats. Hosts such as Stephen Colbert, Jimmy Fallon, and Jimmy Kimmel continued producing content, but have been doing so from the comfort of their own homes.