LEAWOOD, KS (CelebrityAccess) — AMC Theatres, the world’s biggest movie theater chain, revealed in a financial filing on Wednesday that “substantial doubt exists about our ability to continue as a going concern for a reasonable period of time.”
In the regulatory filing, AMC attributed its current situation to the COVID-19 pandemic, after the company’s theaters worldwide have been shuttered since March, leading to virtually no revenue for the theater chain.
As well, AMC noted that even if government restrictions are relaxed allowing their theaters to re-open, distributors may delay the release of new films over concerns of reduced attendance.
Due to the shutdown, AMC projects losses between $2.1 billion and $2.4 billion in the first quarter alone.
However, AMC said that it has begun ramping up spending in anticipation of resuming business and believes it has the necessary cash resources to reopen theaters later this summer.
“We cannot assure you that our assumptions used to estimate our liquidity requirements will be correct because we have never previously experienced a complete cessation of our operations, and as a consequence, our ability to be predictive is uncertain,” AMC said
“If we do not recommence operations within our estimated timeline, we will require additional capital and may also require additional financing if, for example, our operations do not generate the expected revenues or a recurrence of COVID-19 were to cause another suspension of operations,” the company added.