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AMC Is on the Verge of Bankruptcy After 100 Years in Business

One of America’s most well-known movie show chains is edging nearer to chapter. According to a report by Bloomberg, AMC, the largest movie show in the U.S., is taking a look at its present funds working out as early as subsequent month, at which level they’d don’t have any selection however to file for bankruptcy. Read on to search out out what’s forward for the cinema large, and for extra on the present state of the economic system, try This Beloved Restaurant Chain Just Filed for Bankruptcy.

In an try to lift the $750 million it wants to remain affloat, AMC is taking a look at promoting extra shares, producing financing from European traders, negotiating lease breaks on its theaters, and placing offers with present debt holders. But AMC’s shares fell one other 19 p.c on Monday, Dec. 14 when information broke {that a} set of senior collectors had been pushing the chain to file for bankruptcy, in line with The Motley Fool.



While AMC’s choices look like working out, the writing on the wall has been there since the spring, when it grew to become clear that studios did not want theaters to outlive. NBCUniversal CEO Jeff Shell advised The Wall Street Journal in April that, on account of the success of Trolls World Tour on paid On Demand companies, Universal deliberate to release movies on both PVOD and in theaters going ahead. As a consequence, AMC CEO Adam Aron threatened to drag all Universal Studios movies in the future. To Aron, it appeared to spell the finish for AMC and of film theaters as we have recognized them.

The total film trade has been hit by an ideal storm of occasions this yr, with income decimated by government-mandated shutdowns, client reluctance to go to the theaters that are open, and a scarcity of new big-ticket films as studios have delayed the releases of the main movies that may usually increase footfall. As a consequence, Bloomberg reviews that attendance at AMC’s places throughout the nation fell by 92 p.c in the fourth quarter of 2020 in comparison with the identical interval in 2019.

The prognosis for 2021 appears to be like grim for film theaters usually. While a vaccine is now beginning to be rolled out, it is going to take a lot of the new yr for sufficient individuals to be inoculated to make a return to regular life, together with going to the films. Meanwhile, on the studio aspect, Warner Bros. introduced final week that every one 17 of its greatest scheduled films for 2021 could be launched concurrently on the HBO Max streaming service in addition to in theaters.

Of course, AMC, which has been round since 1920, is hardly the solely firm struggling proper now. Read on for extra examples of celebrated American chains which were hit exhausting by this chaotic yr, and for one more shocker, try This Iconic Clothing Chain Is Closing Its Biggest Stores.

Read the unique article on Best Life.

The women's clothing store Francesca's Collections storefront at the MIllenia Mall in Orlando, Florida.
Joni Hanebutt / Shutterstock

Clothing and equipment chain Francesca’s was a mainstay of the buying expertise for tweens and younger adults, however the hassle began to indicate in November. On Nov. 16, the firm introduced that 140 of its 700 shops would shut by the finish of Jan. 2021. Then, the chain filed for Chapter 11 chapter safety on Dec. 3 and introduced a further 97 places would shutter. And for one more chain that is in hassle, try This Iconic Clothing Brand Is Starting to Close Over 200 Stores.

Guitar Center storefront in Santa Clarita, CA
Juan Llauro / Shutterstock

Guitar Center has been a everlasting fixture in the music world for greater than three a long time, most famously for its 30,000-square-foot retailer on Sunset Boulevard in Hollywood. The chain underwent a serious overhaul in 2018, nevertheless it wasn’t sufficient to safe its footing and in mid-November, Guitar Center introduced that they had been getting into a restructuring deal to chop debt by $800 million. The firm confused that this deal will enable enterprise operations to proceed with none interruption to its 300 shops nationwide. And for extra up-to-the-minute retail information, join our day by day e-newsletter.

the entrance of a Game Stop store in a mall in Kokomo, Indiana
Shutterstock

After a decade-long downward spiral, GameStop introduced in early December that it’s going to shut greater than 1,000 shops by the finish of its fiscal yr in March. The largest online game retailer in the world already closed over 783 stores over the earlier two years.

But CEO George Sherman continues to be optimistic, in line with Games Industry. “We anticipate, for the first time in many quarters, that the fourth quarter will include positive year-on-year sales growth and profitability, reflecting the introduction of new gaming consoles, our elevated omni-channel capabilities and continued benefits from our cost and efficiency initiatives, even with the potential further negative impacts on our operations due to the global COVID-19 pandemic,” he mentioned throughout a Dec. 8 name with traders. And for extra online game information, know that If You Bought This Year’s Most Popular Gift, You Need to Get a Refund.

Naturalizer sore in Florida, South, Miami, International Mall
Jeffrey Isaac Greenberg 16+ / Alamy Stock Photo

Another almost 100-year-old model just lately introduced main closures: Naturalizer, which dates again to 1927. The retailer’s mum or dad firm, Caleres Inc., revealed in late November that it was closing 133 Naturalizer shops in the U.S. and Canada. By the finish of the fiscal yr, solely two will stay in the U.S.: one in Miami’s Dadeland Mall and New York City’s thirty fourth Street location.

During Caleres’ third-quarter earnings name, the firm’s SVP and CFO Kenneth Hannah mentioned the coronavirus pandemic has been “putting pressure and putting a number of [Naturalizer] stores into a loss position,” in line with Retail Dive. “We went from shops that had been producing [a] first rate quantity of income and clearly that discount [in foot traffic] has put a lot of pressure on the bottom line. … Now is only a good time to go ahead and exit.” Footwear News reviews that Caleres mentioned they plan to grow Naturalizer’s e-commerce business by each its personal web site and the web sites of different Caleres manufacturers, together with Famous Footwear. And for one more closure that has many consumers dissatisfied, try This Mall Favorite Just Filed for Bankruptcy.



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