AMC Theaters Warns Of Bankruptcy, Cinemark Outlines Re-Opening

Those most excited to see Christopher Nolan's Tenet debut in theaters, on July 17, may just be theater chain giants AMC Entertainment and Cinemark. No one expected large movie theater chains to make money while they were closed, shuttered in mid-March to prevent COVID-19 spread, but recent reports of first quarter losses came with a grim outlook from AMC and optimism from Cinemark.

Wednesday morning, Variety reported that AMC is once again worried about bankruptcy. "We believe we have the cash resources to reopen our theaters and resume our operations this summer or later," AMC wrote as part of an SEC filing, before noting that the chain has "never previously experienced a complete cessation of our operations." It also warned that due to the possibility of additional closures or lower-than-expected demand, "substantial doubt exists about our ability to continue as a going concern for a reasonable period of time." In April, AMC raised a similar alarm, but managed to secure $500 million to see them through to July. Later that month, AMC had a tiff with Universal over the paid video-on-demand release of Trolls World Tour.

Competitor chain Cinemark also reported quarterly losses today (via The Hollywood Reporter), but focused on outlining their four phase plan to reopen US movie theaters, starting June 19. According to Cinemark CEO Mark Zoradi, Cinemark projects all theaters will be open by July 10.

Cinemark’s spin is decidedly more optimistic than AMC's. Zoradi's claims that the theater experience "will be like an airline" sound almost comical until you remember that there's a worldwide pandemic. Pandemic considered, plans for deep cleaning, plexiglass barriers, hand sanitizer, paperless ticketing, and seating with six feet between patrons sound not only logical but like a downright nice moviegoing experience.