News for the cinema exhibition sector just keeps getting worse.
AMC Theatres, the world’s largest exhibitor, warned in public filings on Tuesday that its “existing cash resources would be largely depleted by the end of 2020 or early 2021” should current trends persist. Attendance at most of its U.S. locations is down approximately 85% at present.
The reduced movie slate for the fourth quarter of this year, combined with the absence of significant increases in attendance from current levels, means the company will require additional sources of liquidity to meet its financial obligations.
Among the measures the firm is considering are additional debt and equity financing, potential asset sales, joint-venture or other arrangements with business partners; and minority investments in their capital stock.
Exhibitors are not happy with the evacuation of titles from the Fall film season, especially Disney’s recent move of pulling “Soul” from a November 20th theatrical release date in favor of a Disney+ Christmas Day premiere.
The International Union of Cinemas, which reps exhibition across 38 countries in Europe, issued a statement about it earlier this week and warned that: “By the time some studios decide that the moment is right to release their films, it may be too late for many European cinemas.”
AMC Theatres shares were down 6.9% earlier today.
Source: THR
