Cinema chain Cineworld declared bankruptcy this past Wednesday.
AMC Entertainment CEO Adam Aron responded on Twitter to rival movie theater operator Cineworld declaring for bankruptcy Wednesday.
Earlier on Wednesday, Cineworld said it has filed for Chapter 11 bankruptcy in the United States, making it the second biggest movie theater chain in the world behind AMC. The Southern District of Texas Bankruptcy Court.
The company that owns Regal Cinemas said in August that they were exploring a change.
In response to a filing by a rival, Aron tweeted, “Fortunately, AMC is in a very, very different circumstance – since retail investors welcomed us and allowed us raise boatloads of cash.” It was the retail sector that ultimately ensured AMC’s survival.
REGAL CINEMAS PARENT CINEWORLD FILES FOR BANKRUPTCY
When COVID-19 pandemic limitations threatened to shutdown AMC cinemas, the company’s retail investors came to the rescue.
The corporation issued APE preferred stock units as a special dividend in August, and they have subsequently began trading on the New York Stock Exchange. The “Ape” retail investors’ nick moniker inspired the ticker symbol for the units of the biggest theater operator in the world.
Revenue at AMC Theatres was up more than fivefold in the first quarter compared to the same period a year earlier, as moviegoers continued to come to movies despite the COVID-19 outbreak. The image was taken from the iStockphoto database and was taken by the iStockphoto database.
As of the conclusion of the second quarter of 2022, AMC reported having $1.176 billion in cash on hand. Its net loss decreased to $121.6 million from $344 million during the second quarter, and its sales was roughly $1.17 billion.
IN SPITE OF A QUARTERLY LOSS, AMC HAS DECLARED A SPECIAL DIVIDEND.
In the past, both Cineworld and AMC have said that they anticipate a small third-quarter film slate.
Still, in August, Aron indicated that AMC is “very confident about the increased demand for our portfolio of movie theaters in the fourth quarter of 2022 and calendar year 2023.”
Cineworld stated in a statement that its worldwide operations and cinemas will continue “as normal” throughout the restructuring. In the first quarter of 2023, it plans to emerge from Chapter 11 bankruptcy.
Cineworld CEO Mooky Greidinger stated in a statement that “the pandemic was an extraordinarily tough period for our company,” due to the forced shutdown of theaters and the massive disruption to film schedules. The company states that “this new procedure is part of our continuous efforts to enhance our financial position and is seeking a de-leveraging that will produce a more robust capital structure and successful business.”