A major cinema company is in trouble again, a year after narrowly escaping bankruptcy. AMC Entertainment (AMC) stock hit a 52-week low on Wednesday as the company grapples with mounting debt, falling shares and a less than spectacular release calendar.
The company rebounded from its near-bankruptcy last year, fueled by the popularity of meme stocks and the NFT market. However, market slumps in these two areas this year have put the film chain in dire straits.
While the company has explored revenue diversification opportunities, including modernizing movie theaters and investing in a gold mine, efforts haven’t gained momentum. The company also recently issued a preferred stock dividend called “APE,” an ode to the popular monkey-based NFTs.
As of June 30, AMC had more than $1.17 billion in available liquidity. However, its debt burden stands at $5 billion, a figure $2 billion above market value.
The company has also reported dismal earnings over the past few months. AMC posted losses of $121 million in its Q2 report.
Shares of AMC closed at $5.85 on Wednesday, down $0.27, or 4.41%. The fall in value means a decline of over 80% for the world’s largest cinema company.
https://www.ibtimes.com.au/year-after-nearly-escaping-bankruptcy-amcs-troubles-continue-1839479?utm_source=Public&utm_medium=Feed&utm_campaign=Distribution A year after it nearly avoided bankruptcy, AMC’s troubles continue