Analysts: AMC Near Bankruptcy

Analysts are saying that Leawood-based AMC Theatres is close to facing bankruptcy, though the company has not released a statement confirming that is the case.

Last month, the company said it would close all of its 1,000 cinemas in the United States due to the COVID-19 outbreak for six to 12 weeks, though they are expected to have their doors shut longer. It has also furloughed many workers in its corporate offices.

A report in entertainment trade publication Variety said that MKM Partners analyst Eric Handler wrote:  “Based on our view that theatres will be closed until at least August and our belief that AMC lacks the liquidity to stay afloat until that time, we expect the company will soon be faced with filing for bankruptcy.”

AMC reportedly had $265 million in cash and $332 million in credit as of the end of 2019.