Movie theaters have been hit hard by the pandemic, with many filing for bankruptcy in order to stay afloat. Theaters have had to close their doors due to the lack of customers and revenue, leading to a decline in ticket sales and concession stand profits.
This has caused many theater chains to file for bankruptcy in order to restructure their debt and keep their business alive.
One of the biggest companies that filed for bankruptcy is AMC Theatres, the world’s largest theater chain. In December 2020, AMC filed for Chapter 11 bankruptcy protection with over $5 billion in debt.
This was a result of the pandemic forcing them to close their theaters across the US, UK, and Europe due to health regulations. While they were able to secure $917 million in financing from Silver Lake Group and Apollo Global Management, it was not enough to save them from filing for bankruptcy.
Another theater chain that has recently faced financial troubles is Regal Cinemas. The company was forced to close all its locations in March 2020 after movie studios pulled their releases due to the pandemic.
Regal had already been struggling financially prior to the pandemic as ticket sales had been declining steadily over recent years. In October 2020, Regal announced that it would be filing for Chapter 11 bankruptcy protection with nearly $2 billion in debt.
Cinemark, another major theater chain based in Plano, Texas also filed for Chapter 11 bankruptcy protection in June 2020 due to millions of dollars of debt accrued during the pandemic. Cinemark was able to secure additional funding from Goldentree Asset Management LP and other creditors which allowed them to keep their doors open.
ArcLight Cinemas, a popular art-house movie theater chain based in Los Angeles also declared bankruptcy in April 2020 due to falling revenues caused by the pandemic closures. They were unable secure enough financing from creditors before they were forced into Chapter 11 protection.
These are just some of the movie theater chains who have had no choice but file for bankruptcy during this difficult time. While some are still able operate despite their financial difficulties, others have not been so fortunate and are now faced with an uncertain future.
In conclusion, what movie theaters have filed for bankruptcies is a grim reflection of how hard these businesses have been hit by Covid-19 lockdowns and restrictions on operating hours. With many theaters still facing an uncertain future it remains unclear when or if these businesses will be able recover fully from this crisis.