AMC has 'Substantial Doubt' It Can Remain in Business

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bmoura

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An update on the movie business from AMC

 

ar surround

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Ugh...it's a sign of the times with coronavirus being a whole bunch more of nails in the coffin. Most movies theathers that I've been to in the last couple of years offer 'automatic-social-distancing' because crowds are so small. After a number of changes in ownership during the last few years, the local multiplex finally closed...and that was just before the pandemic hit.
 

Sonik Wiz

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An update on the movie business from AMC

Living in the Kansas City area AMC like Sprint & Cerner are local business' to me. Sprint has had its ups & many downs over the years but Cerner just keeps growing. AMC did well & was solid until the pandemic. There are of course different types of bankruptcies & hopefully it could restructure & still survive. If not I see the theater spaces as valuable property & move in ready for another chain to buy. The AMC name has value & there's a chance it could be bought & survive a bankruptcy.

Cinemark & B&B theaters are in town (the latter one is local too) so there's other choices but I would certianly miss AMC the most.
 

Q-Eight

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Frankly, I'm shocked to hear lately how many huge corporations have been operating on such thin margins that something like this economic turn-down basically ruins them.
Now, I'm no business man but one thing I've learned is you always have something set aside for a rainy day.
 

4-earredwonder

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Frankly, I'm shocked to hear lately how many huge corporations have been operating on such thin margins that something like this economic turn-down basically ruins them.
Now, I'm no business man but one thing I've learned is you always have something set aside for a rainy day.
It's a well known fact that movie theaters and restaurants derive most of their revenue from their concession stands/bars and with a future predicated by social distancing and mandated 1/4 capacity coupled with high rents, utilities, etc to pay, the future looks grim indeed.

I was always taught from the time I was a child to save for that rainy day ...... but a lot of small businesses don't have that luxury especially with the Amazons, Walmarts and Targets of the world gobbling up a lot of their revenue.

For instance, how could any smallish record/video store ever compete with Amazon's cut rate prices? Especially with rents and insurances steadily soaring.

Literally being shut down for 90 days.......and with new 'guidelines' imposing severe limitations on capacity and peoples' fear to get back to life as 'normal,' will surely be felt for some time.

And a second wave of Covid 19 and further closures will certainly further undo an already fragile economy, akin to the bird flu pandemic of 1918~1920 which really didn't spike until the FALL. And even if a vaccine is found, keep in mind, last year's flu vaccine was ONLY 40% effective so don't expect any magic bullets soon.
 

HomerJAU

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Now, I'm no business man but one thing I've learned is you always have something set aside for a rainy day.
Its a lot easier running a small business, you don’t need much to keep you going. Those big companies need millions set aside and as you point out many don’t have spare cash.

Shows how overvalued the sharemarkets are though.
 

4-earredwonder

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Its a lot easier running a small business, you don’t need much to keep you going. Those big companies need millions set aside and as you point out many don’t have spare cash.

Shows how overvalued the sharemarkets are though.
Ah, yes, Homer, that DISCONNECT between Wall Street and Main Street. The market has been overvalued for years and if one connects the dots, have NO idea what Wall Street is celebrating. Rampant unemployment, the US government writing out Trillion dollar bailouts which have yet to reach the small businesses and an uncertain future [NO VACCINE .... NO FUTURE] points to a non~reality which boggles the mind.

And mind you, a LOT of small business do operate paycheck to paycheck...as do a VERY large percentage of individuals, so YES, any interruption in revenue could have serious consequences.
 
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marpow

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As a small business owner in SF it has been super stressful but we are back to work and I received my stimulus check so I really have nothing to complain about.
Things that I would occasionally do , movies, gym, massage, restaurants, etc, I just have no interest until there is a vaccine.
The Covid 19 Pandemic is still very real for me.
 

J. PUPSTER

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Ah, yes, Homer, that DISCONNECT between Wall Street and Main Street. The market has been overvalued for years and if one connects the dots, have NO idea what Wall Street is celebrating. Rampant unemployment, the US government writing out Trillion dollar bailouts which have yet to reach the small businesses and an uncertain future [NO VACCINE .... NO FUTURE] points to a non~reality which boggles the mind.

And mind you, a LOT of small business do operate paycheck to paycheck...as do a VERY large percentage of individuals, so YES, any interruption in revenue could have serious consequences.
The stock market is reacting to what it believes the economy will be like in a year from now (always looking forward), it's like a giant Gambling hall.
Personally, with everything you mention, it's one hell of a gamble - brings to mind a Kenny Rogers tune :unsure: :)

I'm of the mind that movie theaters will be in dire straits going forward.

 

Sonik Wiz

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An update on the movie business from AMC

Another update:

 
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