Biggest Movie Theater Chain In US In Danger Of Bankruptcy

It's no secret that many retail chains are struggling financially. This year Bed, Bath & Beyond, Tuesday Morning and Christmas Tree Shop all declared bankruptcy and closed their stores, while Sears, Pizza Hut, CVS, Rite Aid, Walgreens and Boston Market have shuttered locations due to the challenges they faced. However, it's not just retail chains dealing with the issues. AMC Theaters, America's largest movie theater chain, is also fighting off bankruptcy.

According to Investor Place, the company has lost over $700 million in the past year, since, with the increase in popularity of streaming services during and after the pandemic, moviegoers haven't been heading to theaters as often as they once did. AMC CEO Adam Aron is aware of the difficulties they're facing. In a recent earnings call he stated, "We've had to adjust our strategy because the movie theater industry has come back slowly, and so our strategy has become survive, then thrive. We have had to take the steps to make sure this company survives. And not all companies in our industry can say that."

Among the steps they've taken has been selling off stock to raise cash, but if people continue to not go out to see movies, AMC won't be able to stay afloat. To understand how bad things have gotten, between 2009 and 2018, the box office numbers were around $10 to $12 billion. Last year, it was $7.3 billion and it seems to only be a little better in 2023. Aron has confidence in the future though. He stated, "I've already said in 2024, 2025, it's going to look pretty bright. But if we were to run out of cash before we get to 2024 or 2025, that would be a disaster. And that's a disaster that I simply will do everything in my power to make sure that this company avoids."

If the company can't avoid it, some, and potentially all of the their more than 7000 theaters, may have to close or be sold.