AMC Theaters Escapes Bankruptcy

AMC Theaters escape bankruptcy because of COVID-19. It was announced that on Monday their doors will stay open throughout 2021 because of a $917 million infusion of money.


As AMC movies were being pushed back to later dates and people were staying home, users on Reddit started posting #SaveAMC on Twitter because they say Wall Street is being pessimistic about AMC. The stock started at $2.01 for each share at the beginning of the year and rose to $19.90 by Jan. 29, 2021. 

AMC has dropped 55% at intraday lows and then on Tuesday, Jan. 26 2021, it was down 71% from the most recent high of $20.36. 

AMC Movie Theaters was on the edge of bankruptcy last year because of the COVID-19 pandemic. Due to raising $917 million, AMC announced on Monday, Jan 25, that they can remain open through 2021. 

Half of the money, $506 million, was provided by investors who purchased AMC shares in Dec. from their stock offering. The other half of the money, $411 million, came from AMC, which they took out of their European subsidiary. 

Many feel that not being able to go to the movie theaters because of the pandemic would be sad.

“Probably my favorite part about going to the movies is hanging out with friends but I also really enjoy the movies and the food,” sophomore Gavin Saint said. 

The AMC’s top locations, Los Angeles and New York City, were closed due to the local restrictions, while the theaters that were able to stay open had to limit the seating down to about fifty percent for safety. 

“If AMC Theaters closed I would be very sad because I really enjoy going to see movies with both my family and friends,” sophomore Paige Witham said. 

However, some people don’t mind it closing so much. 

“It wouldn’t be the end of the world because we have so many streaming systems such as Disney Plus, Netflix, HBO, and Hulu,” sophomore Lincoln Halvorsen said. 

With AMC having enough money and people going to the movie theaters, they can be able to remain open through 2021.