AMC’s corporate struggles threaten Framingham movie theater
Courtesy | Google
The AMC theater in Framingham may be impacted by the company's current financial struggles amidst the coronavirus pandemic.
The struggles of the AMC movie theater corporation do not bode well for the company’s Framingham location, with a statement from the company on Wednesday detailing the financial pressure the coronavirus closures have put on the movie theater company.
In the statement, the company explains while it had a cash balance of $718.3 million as of April 30, the company has not been able to bring in any revenue since. Even with AMC projecting theaters will be reopening this summer, the company’s liquidity will depend on the timing of movie releases and the ability of AMC theaters to generate revenue, according to the statement.
Additionally, if the company needs to borrow money again, it will not be on favorable terms, according to the statement.
“Due to these factors, substantial doubt exists about our ability to continue as a going concern for a reasonable period of time,” the statement reads.
If the company is forced into bankruptcy, it would join the ranks of other large corporations forced into restructuring by the coronavirus pandemic. These include retailers JCPenney and Pier 1.
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