AMC May Not Survive Fallout From Coronavirus
The company issued the warning in a public filing saying that that crisis has significantly undermined its finances and introduced profound uncertainty about its future.
The "going concern" warning is typically required of publicly traded companies that are facing dire circumstances that jeopardize their business, though many live on, so there is still hope for the nationwide chain.
AMC had to temporarily close all of its theaters through at least late June. "We are generating no revenue from admissions, food and beverage sales, or other revenue, which represent substantially all of our revenue and cash flow from operations," AMC Entertainment Holdings said in the public filing. "We cannot predict when or if our business will return to normal levels."
AMC said, "We cannot be certain that we will have access to sufficient liquidity to meet our obligations for the time required to allow our cash generating operations to resume or normalize. We may not be able to obtain additional liquidity and any relief provided by lenders, governmental agencies, and business partners may not be adequate and may include onerous terms. Due to these factors, substantial doubt exists about our ability to continue as a going concern for a reasonable period of time."
Read the original article on USA Today.