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Bankruptcy ‘increasingly likely’ for AMC theaters

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What does this mean for Odeon UK?

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It should be mentioned that AMC can continue operating when under Chapter 11. However, that's still not a great sign, and things could get worse, if theaters are shut down longer.

 

Cineworld (which owns Regal) have also mentioned they've been struggling too.

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This doesn't need a post. All that will happen is that AMC will file for Chapter 11 bankruptcy and do some reorganisation. It's only a problem if its Chapter 7 bankruptcy

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Posted (edited)

What's the % of total US screens that are owned by AMC?

Edited by Napoleon

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i thought bankruptcy are quite common in USA??? that didn't spell the end, only disruption

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Lame.

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Posted (edited)

Must be poorly managed to go under this quick. They seem like too big of a chain for Netflix type to buy. Maybe Steve Ballmer wants a theater chain.

Edited by Ryan Reynolds

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56 minutes ago, Ryan Reynolds said:

Must be poorly managed to go under this quick. They seem like too big of a chain for Netflix type to buy. Maybe Steve Ballmer wants a theater chain.

Well not necessarily, we are talking about an event that never occured in American History before, could easily argue that it would be poorly managed to not go down quick under the current situation (i.e. risk taking/investment was too low).

 

And it will be strange to not go under quick if you are certain that it will happen because of a never before very long situation.

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2 hours ago, lorddemaxus said:

This doesn't need a post. All that will happen is that AMC will file for Chapter 11 bankruptcy and do some reorganisation. It's only a problem if its Chapter 7 bankruptcy

I disagree. Even if this is a Chapter 11 filing, there will be impacts. AMC already announced that one of their locations in the market I'm in will not be reopening. It is permanently closed, as they opted not to renew the lease on the building. They spun it at a business decision, but in all reality if the pandemic didn't happen then they very likely sign a new lease and continue operations. I'm referring specifically to the AMC Star Southfield 20. The timing doomed the location.

 

How many other impacts will there be? Will ticket prices be higher? Will some of their add-on programs, like Stubs A-list be affected? Time will tell. Then there's also the fact that if the lockdown goes on enough and/or people's behaviors have changed because of the pandemic, this could turn into a Chapter 7 situation. The number of companies that started with a Chapter 11 filing and switched to a 7 is too numerous to list.

 

 

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1 minute ago, doublejack said:

I disagree. Even if this is a Chapter 11 filing, there will be impacts. AMC already announced that one of their locations in the market I'm in will not be reopening.

That will be an net impact if the location isn't rented by a competitor next year (and if it is the case, being spun has a business decision could be well true).

 

3 minutes ago, doublejack said:

How many other impacts will there be?

We already had sign of government accepting of the possibility of studio's starting to own movie theater again...... I guess that a remote possibility if the business stay really weak for 18-30 month, maybe Disney and co. could start owning the theater again.

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10 minutes ago, Barnack said:

That will be an net impact if the location isn't rented by a competitor next year (and if it is the case, being spun has a business decision could be well true).

 

 

A company that is solidly profitable will keep all locations open if they make money, even if each location is only seasonally profitable or runs slightly over the profit line on a continual basis. However, a company under financial duress will cut down operations to focus on the most profitable locations, ones that don't need to be carried at any point. I believe that and the fact that AMC simply didn't know when they would be able to open again made the decision to not renew the Southfield location.

 

If I'm correct, we'll see this play out in other locations as AMC's leases expire. Some will get renewed and we won't hear anything about it. Others they will walk away from and close the location. This will be a part of a Chapter 11 plan. There's no way every location is saved.

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25 minutes ago, doublejack said:

How many other impacts will there be? Will ticket prices be higher? Will some of their add-on programs, like Stubs A-list be affected? Time will tell. Then there's also the fact that if the lockdown goes on enough and/or people's behaviors have changed because of the pandemic, this could turn into a Chapter 7 situation. The number of companies that started with a Chapter 11 filing and switched to a 7 is too numerous to list.

Deadline published an article about a poll which said that only 11% of people would wait months before going to cinemas. I am not too worried about theater going decreasing in the long-term. And yes, filing for chapter 11 bankruptcy will have impacts but I just don't see any of them being large.

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This pandemics will likely accelerate the transition towards an all digital future. 

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2 minutes ago, Fullbuster said:

This pandemics will likely accelerate the transition towards an all digital future. 

Was there much analog screen left ?

 

Outside some movie still using film on location, the industry was pretty much already all digital from editing to consumption in 2020 I think.

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42 minutes ago, Barnack said:

Was there much analog screen left ?

 

Outside some movie still using film on location, the industry was pretty much already all digital from editing to consumption in 2020 I think.

 

 

What people mean with this phrase is 'a future where physical options are barely existing'

 

It's commonly used for the gaming market to talk about the decline of the physical market (boxes with a Blu-Ray or cart inside) with the rising domination of sales through online stores. 

 

In the case of the movie market the equivalent might be the death of sales through DVD, Blu-Ray and the decline of theaters attendance. 

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1 minute ago, Fullbuster said:

What people mean with this phrase is 'a future where physical options are barely existing'

True physical / non physical is often conflated with digital (maybe CD being so old by now than the content being digital is already assumed by now), specially in gaming when non-digital game stopped to be a think so long ago (and never were in people house).

 

It certainly could accelerate the trend.

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Ironic that this is within six months of MoviePass going bankrupt. 

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