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Investors joined AMC Entertainment on Thursday, a week before the movie theater network reopened.
The largest film network in the United States, as lead players in the exhibition space, has been closed since mid-March due to the ongoing coronavirus pandemic. On Thursday morning, the company showed that it will reopen next week along with the Regal and Cinemark competition.
Around 400 of the company, more than 600 national theaters, are expected to open before the September 4 launch of “Tenet”. However, the option to reopen theaters in California, New York, New Jersey and North Carolina remains questioned. These states account for approximately 21% of AMC’s general screens.
AMC inventories rose more than 22% after the news. Since January, the company’s inventories have fallen by 23% and inventory has more than halved since last year.
Eric Wold, an analyst at B. Riley FBR, said investors should be wary of the stock movement.
“We are somewhat through the sudden evolution of actions this morning and we continue to believe that the ultimate purpose will have to be the replacement for the film (especially with Disney pulling ‘Mulan’ on its streaming instead of a nationwide cinema release) as well as the initial attendance grades and how they evolve in the coming weeks (especially around any possible accumulation in coVID-19 cases) Array Said.
Cinemas around the world have been heavily affected by the epidemic, but AMC, in particular, has faced increased monetary pressure. Prior to the pandemic, AMC had amassed more than $4.75 billion in debt by equipping its theaters with luxury seats and buying competition such as Carmike and Odeon.
In June, the company declared that the coronavirus could lead to bankruptcy. AMC reached a debt agreement in July to become solvent until 2021.
Plans to reopen AMC theaters have been frozen for months. Initially, the company sought to rehire and reopen in June, but ongoing adjustments to the theatrical calendar of primary box office hits such as “Tenet” and “Mulan” have made this strategy impossible.
Finally, the release schedule has been settled, with Russell Crowe’s “Unhinged” and Christopher Nolan’s reissue of “Inception” on August 21. The following week, “The New Mutants” is scheduled to debut, followed by “Tenet”. Labor Day Weekend.
AMC and other theaters would possibly not be able to offer Disney’s “Mulan” in the U.S. Last week, Disney took the resolution of making the film available at Disney for $29.99 and broadcasting it in theaters in countries that do not have access. to the transmission platform.
Investors expect other newly planned primary films for the last 4 months of the year, adding “Black Widow”, “Soul”, “No Time to Die” and “Wonder Woman 1984” to be on the calendar.
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