AMC, the Biggest Cinema Theaters Chain in the United States is already shut and the experts expect it to remain shut at least until August. Financial Experts say that this would mean an end to the country’s most-celebrated theaters chain as it is likely to file for bankruptcy as its cash reserves are depleting.
The company already furloughed more than 600 corporate employees, including CEO Adam Aron. It has also informed its landlords that will not pay rent starting in April while its cinemas are shuttered. The current cash reserves will help it only till June or July. If the chain goes bankrupt, it will have a major impact on Telugu Cinema.
If this is the case with a big chain, we can imagine the condition of the small theaters. The overseas market will no longer be profitable for Telugu Cinema as the movies will also struggle to have a decent release there. Overseas market is the major contributor to the star films’ revenues in recent years.
If that is impacted, everything from the film budgets to remunerations will have to be negotiated. The deals which are already sealed will also be re-negotiated which will make things even tough. 2020 is turning out to be a massive disaster for Telugu Cinema like every other sector.
