AMC Theatres — currently the world’s biggest movie theater chain — said Wednesday it has “substantial doubt” it can remain in business after the coronavirus pandemic led to theaters shutting their doors, CNN reports.

What’s the news:

  • AMC Theatres said it expects to lose between $2.1 billion and $2.4 billion in the first quarter of the year because of the pandemic, according to CNN.
  • Revenue fell to $941.5 million, which is a 22% drop from 2019’s first quarter, when it earned $1.2 billion.
  • AMC said it will continue to monitor operating restrictions for now. But the movie theater chain said it will face massive challenges if restrictions are lifted. The company said it can open up this summer. But the long haul may present challenges, CNN reports.
  • AMC said:“We believe we have the cash resources to reopen our theaters and resume our operations this summer or later. Our liquidity needs thereafter will depend, among other things, on the timing of a full resumption of operations, the timing of movie releases and our ability to generate revenues.”

Some extra context:

  • Movie theaters across the country have faced major challenges because of the coronavirus pandemic. AMC, Cinemark, Regal and Megaplex movie theater chains shut their doors because of the pandemic. All of them remain closed as the summer movie theater season nears.
  • Reports of AMC potentially facing bankruptcy emerged in the immediate weeks after the chain closed its doors. Reports later suggested the chain wasn’t facing bankruptcy.
  • Brief rumors rose up that Amazon was interested in buying AMC.
  • Movie theater chains have faced another challenge during this time — streaming. Major movie production studios released films through digital release instead of theaters, which has led theater chains to express worry about the future.
  • For example, “Trolls World Tour” hit digital release first, which promoted Universal to suggest it would release films on digital release and movie theaters in the future. AMC proceeded to shut out Universal from its theaters upon reopening.