AMC Theatres in Talks with Bankruptcy Law Firm

AMC Entertainment could be going towards bankruptcy. The largest movie theater chain in the world, has 661 theaters in the United States. These locations have been shuttered nationwide since March 17th and 25,000 workers were furloughed because of the coronavirus outbreak. Now AMC is in talks to hire law firm Weil Gotshal & Manges and could potentially file for Chapter 11 bankruptcy, The Post reports.

The insider that provided the information said that it’s not clear whether the theater chain has hired any other advisors for the possible restructuring. But, bankruptcy filing looks increasingly likely as the company has already begun to skip rent across its locations, according to the source.

A possible bankruptcy could also affect people who have AMC gift cards. When companies file for bankruptcy, they will only accept gift cards if they ask the bankruptcy court for permission and the court authorizes it.