Of the many things that people around the world are most looking forward to doing when the coronavirus pandemic subsides is going to a movie theater safely, a notion that grows more unlikely with each passing week. AMC Theatres, one of the nation’s biggest chains, is reportedly preparing to sell off a large number of shares in hopes of raising more than $120 million, as detailed by The Hollywood Reporter. Earlier this year, AMC reported that they were seeing a drop of 92% year-over-year in revenue, with the closures of the chain around the world clearly crippling the conglomerate.
“We intend to use the net proceeds from the sale of the Class A common stock offered by this prospectus for general corporate purposes, which may include the repayment, refinancing, redemption or repurchase of existing indebtedness or capital stock, working capital, capital expenditures, and other investments,” the most recent filing reads.
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For decades, audiences have largely taken the movie theater industry for granted, as there was never a threat of movies no longer being made, but as in-home entertainment has been on the rise in recent years, as well as the domination of megaplexes by films from only the largest studios, cinemas have seen their fair share of struggles. Movie theaters around the globe closed their doors earlier this year in hopes of slowing the spread of the coronavirus and, while various theaters in specific markets have been able to reopen at a reduced capacity, cinemas have only been earning a fraction of what they typically would, not only due to audiences not being comfortable enough to return, but also due to the number of major movie releases being delayed for long stretches of time.
Complicating matters even further was Warner Bros. announcement that Wonder Woman 1984 would kick off a new trend for their upcoming releases, with the film not only landing in select theaters, but also debuting on HBO Max on the same day. This means that films like Dune, The Suicide Squad, and Godzilla vs. Kong, which some theater execs had hoped would revive the industry, could no longer be relied upon to have a major impact. Not only are movie theater execs upset by this move, but so are many filmmakers, who have detailed how their films were specifically designed to be witnessed on the big screen and that, if they don’t turn major profits, this release strategy complicates the futures of those franchises.
Stay tuned for details on the reopening of movie theaters.
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