AMC theater chain dodges going dark

The nation’s largest chain of movie theaters has a fresh run before it, with AMC Entertainment announcing it has $917 million in “much-welcome” financing as it waits out mass vaccinations.

With no assurances ticket sales will rebound, the company says it has the money to operate at current attendance levels through next July.

AMC has nearly 600 theaters nationally, including in Danbury, Southington, Plainville, Bloomfield and Lisbon, with about 440 open with limited capacity as of last week. All in Connecticut save AMC Plainville 20 have been operating on a Friday-through-Sunday schedule, and popcorn, soda and other food concessions remain closed.

If finalized, the financing package would allow AMC to stretch its operations through July, but CEO Adam Aron indicated the company is hoping for better results. Aron previously led Starwood Hotels & Resorts based in Stamford prior to its 2016 sale to Marriott International.

“Any talk of an imminent bankruptcy for AMC is completely off the table,” Aron said in a statement Monday morning.

“Looking ahead, for AMC to succeed over the medium term, we are going to need for much of the general public in the U.S. and abroad to be vaccinated.”

In mid-January, Connecticut theaters got their first new release since Christmas with the Liam Neeson drama “The Marksman,” which has grossed $6.1 million in the United States, according to IMDB.

North American ticket sales plunged 80 percent last year to $2.25 billion, Comscore reported in mid-January, as states forced theaters to close last spring in an attempt to contain the COVID-19 pandemic. Some companies chose to keep theaters closed for extended periods, rather than carry the costs of operating those venues with tepid attendance.

In response, some studios have released movies directly to streaming platforms concurrently with any theatrical releases, with WarnerMedia facing criticism from some in Hollywood for electing to do so for its full slate this year.

In a filing with the U.S. Securities & Exchange Commission, AMC stated it has curtailed rent payments “on a substantial portion” of its leases and confirmed it has received notices of default that could be the first salvos by some landlords to force theater closures or payments due.

AMC leases its Danbury 16 complex from Danbury Investment Co. LLC, whose Stamfordbased principal Stephen Hoffman said Monday he has renegotiated lease terms with AMC given the pandemic impact on ticket sales. He said he expects demand to rebound, but that theaters may have to recalibrate elements of the theater experience.

“The interesting thing for theaters is, how are they going to accommodate the newer customers, including for food and beverage service?” Hoffman said.

Bow Tie Cinemas has spent the past several years in a multimillion dollar upgrade of its Connecticut theaters, including luxury seating and expanded menus and bar services. The chain has locations in Stamford, New Haven, Norwalk, Trumbull and New Canaan, having ceded its small Wilton complex last year to the nonprofit Prospector Theater.

H John Voorhees III / Hearst Connecticut Media AMC’s Danbury theater complex on Monday morning. AMC announced $917 million in financing that it says will allow it to continue operating.