AMC Entertainment (NYSE:AMC) may be looking at bankruptcy in the future.
Source: QualityHD / Shutterstock.com
Here’s what investors need to know about the AMC Theaters bankruptcy news.
- According to recent reports, the company is considering filing for Chapter 11 bankruptcy protection.
- If the reports are true, AMC is seeking out Weil Gotshal & Manges for help with the matter.
- However, it looks like talks of bankruptcy at the company are still only in the early stages.
- The anonymous insider behind this news claims that an AMC Theaters bankruptcy is most likely on the way.
- They claim this is the case due to hiring on Weil Gotshal & Manges and the company not paying rent at some of its locations.
- It’s also worth mentioning that the AMC Theaters bankruptcy rumors come as it deals with the coronavirus from China.
- Due to the coronavirus, the theater chain has shut down all of its locations for six to 12 weeks.
- While some countries, such as China, are reopening theaters already, it isn’t without restrictions.
- That includes spacing between occupants that are leaving the theaters with plenty of empty seats.
- AMC is also unlucky as many of its theaters are located inside of malls.
- These will be some of the last locations that reopen once the coronavirus settles down.
- As such, it will take the theater chain sometime to get back up on its feet, if it can.
- With that in mind, an AMC Theaters bankruptcy may be the only choice.
AMC stock was down 20.58% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
