(Bloomberg) -- AMC Entertainment Holdings Inc., the largest theater chain in the U.S., will reopen most of its domestic locations on July 15 and expects every major city to allow audiences back in the cinema in time for Walt Disney Co.’s “Mulan” premiere on July 24.
The company, which said last month that it could go out of business unless it’s able to generate cash flow again soon, will be the last major American chain to restart operations. The second-largest chain, Regal, will begin on July 10, while the third- and fourth-largest theater franchises, Cinemark and Marcus, kick off a phased reopening process this weekend.
The industry took on debt to survive a total revenue collapse that began in March, and companies are now taking extraordinary pains to show they’re safe to visit. Every major theater chain is capping ticket sales -- to ensure customers can sit far apart -- and is ratcheting up cleaning. Most theater staff will be required to wear masks and gloves, hand sanitizer will be widely available, and show times will be staggered to reduce crowds.
“The biggest thing we can do to rebuild our industry is to make our theaters safe,” AMC Chief Executive Officer Adam Aron said in an interview. “And to convince the public that when they show up at an AMC theater, they can have confidence.”
Aron said AMC is waiting until the latest date it can to reopen, because he expects the chain to lose money until new blockbusters come out. That won’t be until the end of July, at the earliest, and schedules may still shift.
Warner Bros.’s “Tenet” was supposed to be the first big-budget movie to debut, on July 17, but was moved to July 31. Disney’s “Mulan” is now expected to be the first post-coronavirus blockbuster available in theaters.
AMC will start by opening 450 locations on July 15 and will show old films, becoming fully operational within the following 10 days. Aron said some locations may never return, and he’ll closely watch the profitability of each of the company’s 630 U.S. venues over the next 18 months to determine which locations should close.
Aron said AMC is spending “millions” on cleaning protocols, which is another drain on cash, but essential to generating new ticket sales. Among the sanitation measures, AMC will deploy electrostatic sprayers, use special vacuums and upgrade ventilation filters. But the chain won’t require customers to wear masks in states where they’re not obligated.
Additionally, the refreshment menu will be limited and the chain will ban the use of cash. He expects AMC to boost the capacity of its auditoriums to about 50% by Labor Day, on Sept. 7.
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