AMC Theatres' Survival as We Know It Just Turned Into a Horse Race
In an announcement that didn't surprise anyone, AMC Entertainment Holdings (NYSE: AMC) -- you know it better as AMC Theatres or its Carmike Cinemas arm -- injected the always alarming "substantial doubt exists about our ability to continue as a going concern" language into Wednesday's preliminary first-quarter earnings report. Coronavirus-driven shutdowns have made an already difficult situation for the movie theater industry even worse, and it remains unclear when things might return to normal for the film business.
The matter isn't all that complicated, though. Either movie theaters will quickly convince moviegoers that it's safe to return once lockdowns (and now nationwide protests) end, or the media, politicians, and streaming platforms will convince consumers that watching TV at home is the more reasonable option.
AMC desperately needs the film business to win that war fast. If it doesn't, it will need money it can't afford to borrow from lenders, who may not actually be willing to offer the movie theater chain a loan anyway.
Source Fool.com
