AMC Not Bankrupt

AMC Theaters Furloughs CEO And Staff Amidst Coronavirus Outbreak

As things continue to change minute by minute during the coronavirus outbreak, many companies are still trying to figure out their next move, in order to be able to return to business as usual after the pandemic.

The latest company to make a major adjustment is AMC Theaters, as it closes theaters across the country, furloughing over 600 corporate employees amidst the current pandemic, according to Variety.

The act will see that all corporate AMC staff members work reduced hours for reduced pay, or receive no hours at no pay, the outlet reports.

This news comes just a week after the chain shut down all 634 locations throughout the U.S. and Canada indefinitely.

With the current health crisis throughout the nation, AMC, amongst many other businesses, are left with no source of income. Thus the company’s 26,000 employees had to either be furloughed or let go.

Each corporate employee furloughed will keep their active employment status as well as health benefits.

The company released a statement Wednesday, explaining that though, no corporate employees will be fired, a furlough plan had to be set in place, in order to have enough cash to be set up for success when business goes back to normal operations.

“As we all know, these are unprecedented times,” the statement said. “AMC is doing everything possible to ensure that we can welcome back both our associates and our guests as our theatres reopen.”

On Tuesday, AMC revealed that it borrowed $304 million from credit facilities on March 20, in an attempt to “increase its cash position and preserve financial flexibility” amidst the current outbreak.

The company is estimating a six to 12 week shut down due to the outbreak. However, it’s unclear how long businesses will actually remain closed.

During the remainder of the closure, A-List, the company’s subscription service will halt billing and payment.

AMC Furlough

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