AMC Theater Chain Has 'Substantial Doubt' It Can Remain in Business After Coronavirus Closures

The movie theater chain estimates to have lost between $2.1 billion and $2.4 billion in the first quarter

AMC movie theater
AMC movie theater. Photo: Alexi Rosenfeld/Getty Images

AMC Theaters, the largest movie-theater chain in the U.S., is struggling.

In a recent financial filing, AMC reported that it has "substantial doubt" it can remain in business following extended closures due to the coronavirus pandemic, according to CNN.

"We are generating effectively no revenue," the company said on Wednesday in the filing, estimating to have lost between $2.1 billion and $2.4 billion in the first quarter after having to close earlier this year.

The company also reported that its quarterly revenue is down roughly 22 percent this year, having fallen to $941.5 million from $1.2 billion in the same quarter last year.

In April, AMC recorded a cash balance of $718.3 million, per CNN. While the company said it had the resources to reopen "this summer or later," it added, "Our liquidity needs thereafter will depend, among other things, on the timing of a full resumption of operations, the timing of movie releases and our ability to generate revenues."

AMC said that while it plans to monitor "potential lifting of various government operating restrictions," it warned there would still be serious challenges to its operation, such as studios holding back new films.

Never miss a story — sign up for PEOPLE's free daily newsletter to stay up-to-date on the best of what PEOPLE has to offer, from juicy celebrity news to compelling human interest stories

"Even if governmental operating restrictions are lifted in certain jurisdictions, distributors may delay the release of new films until such time that operating restrictions are eased more broadly domestically and internationally, which may further limit our operations," the company said.

Many of this year's highly anticipated films — including Mulan, Wonder Woman 1984 and F9 — were delayed amid the pandemic and movie theater closures. However, some studios have also opted to release its films on demand.

Universal released its Trolls World Tour on demand, causing a rift between Universal and AMC. The chain decided to ban Universal's films from its theaters.

Additionally, in May, a new study from Performance Research and Full Circle Research Co. indicated that the majority of moviegoers — 70 percent — would prefer to watch the first-run of a movie as a digital rental at home instead of heading to a theater.

As information about the coronavirus pandemic rapidly changes, PEOPLE is committed to providing the most recent data in our coverage. Some of the information in this story may have changed after publication. For the latest on COVID-19, readers are encouraged to use online resources from CDC, WHO, and local public health departments. PEOPLE has partnered with GoFundMe to raise money for the COVID-19 Relief Fund, a fundraiser to support everything from frontline responders to families in need, as well as organizations helping communities. For more information or to donate, click here.

Related Articles