People walk outside the newly boarded AMC 34th Street 14 movie theater as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on September 4, 2020 in New York City.
Noam Galai | Getty Images
AMC, the largest cinema chain in the U.S., warned investors on Tuesday is in danger of running out of cash by early 2021.
Shares of the company tanked by 7.8% in early trading Tuesday. AMC’s stock, which has a market value of $446 million, has plunged 44% this year.
In a public filing, the movie exhibitor said a bare movie slate and lackluster attendance has left its business hemorrhaging cash with little hope of recouping losses in the near future.
As of Friday, AMC said, has been able to reopen 494 of its 598 U.S. theaters, but only at a limited capacity of 20% to 40%. The remaining theaters are in California, Maryland, New York, North Carolina and Washington. These theaters, although only around 17% of the company’s total footprint, represented nearly a fourth of the company’s total revenue last year.
For now, there are only four major films on the slate for the rest of the year: Universal’s “The Croods: A New Age,” Disney’s “Free Guy,” Paramount Pictures’ “Coming 2 America” and Warner Bros.’ “Wonder Woman 1984.”
And even their release dates could change as coronavirus case numbers continue to rise and some states remain stringent about