AMC Seeking Government Assistance
Like most American companies, large and small, the movie industry is struggling to stay afloat. The three biggest movie companies all closed down on company stock prices. As of the close of business on Friday afternoon IMAX stock was down 9.85%, Cinemark was down 3.86% and the countries largest movie chain, AMC, was down 6.53%. All of the theaters are closed and don't expect to re-open for the next 4 to 6 weeks.
In an interview with CNN CEO Adam Aron said the theater chain "doesn't have a penny coming in the door." Many employees, in an effort to reduce company expenses. have been furloughed or laid off, including the company's CEO, Aron. Aron says the company needs assistance from the government just to meet its monthly expenses. The company, which made $500 billion last year, has no revenue coming in and needs $30 million a month just to pay its fixed costs, such as company employees and theater vendors.
Aron told CNN the company wasn't looking for a bailout, but rather a government loan, which would be repaid once the theater reopened. All AMC theaters in the US and its other theaters around the world remain closed. Aron told CNN that the movie chain has been in business for 100 years and has hopes to keep the movie company open for another 100 years.