LEAWOOD, Ks. (WTVO) — AMC Theaters looks increasingly likely to file for bankruptcy, a Wall Street analytics group said Thursday.
The theaters shut down in March to halt the spread of coronavirus, making a bad situation worse, according to Variety. The theater chain, which operates Showplace 16 in Rockford and Showplace 14 in Machesney Park, finished off 2019 with a $149 million loss.
In a report Thursday, 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.”
Handler predicts that AMC is headed for bankruptcy and reorganization, saying the scenario was a “distinct possibility” in an April 8th note.
AMC Theaters is the nation’s largest cinema chain. It furloughed more than 600 corporate employees, including its CEO Adam Aron in March.
According to Variety, AMC has also informed landlords that it will not be paying rent starting in April.