AMC Theatres Bankruptcy Is ‘Likely,’ Analysts Say – But Don’t (Just) Blame the Pandemic

“Even if you sell out every seat in the house, you’re still gonna lose money with that much debt,” chairman of Wilk Auslander’s bankruptcy department Eric Snyder says

AMC Theatres is “likely” to face bankruptcy, analysts say, but the nation’s largest cinema chain was at risk long before the coronavirus pandemic shut down its theaters.

AMC tallied roughly $5 billion in debt at the end of 2019 and losses of $149 million — that was after recording a $110 million profit in 2018. And during the company’s most recent fourth quarter conference call, AMC CEO Adam Aron said that he and other top executives had agreed to cut their salaries and bonuses for three years. That was all before the pandemic shutdown choked its revenue stream altogether.

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Trey Williams

Trey Williams

Film Reporter covering the biz • trey.williams@thewrap.com • Twitter: @trey3williams