By Joshua Huff, sports editor
BIRMINGHAM — AMC Theaters will reopen 450 of 600 US locations on July 15, 2020, and will require moviegoers to wear masks, which is a reversal of its position on Thursday when the chain announced that masks would not be mandatory.
The move comes after the theater chain discussed the idea of wearing masks with health experts and scientists hours after it publicly stated that moviegoers would not be required to wear masks, despite public information from the Centers for Disease Control and Prevention, along with other health organizations, recommending that people in the US wear masks to prevent the spread of the coronavirus.
“We did not want to be drawn into a political controversy,” Adam Aron, CEO of AMC, told Variety on Thursday. “We thought it might be counterproductive if we forced mask wearing on those people who believe strongly that it is not necessary. We think that the vast majority of AMC guests will be wearing masks. When I go to an AMC feature, I will certainly be wearing a mask and leading by example.”
The movie chain had announced that it would require its employees to wear masks and have their temperature taken before arriving to work.
“This announcement prompted an intense and immediate outcry from our customers, and it is clear from this response that we did not go far enough on the usage of masks,” Aron said in a statement Friday. “At AMC Theatres, we think it is absolutely crucial that we listen to our guests. Accordingly, and with the full support of our scientific advisors, we are reversing course and are changing our guest mask policy. As we reopen theatres, we now will require that all AMC guests nationwide wear masks as they enter and enjoy movies at our theatres.”
The controversy follows the news that the chain, which has five locations around the Birmingham area, is on the brink of bankruptcy and expressed doubt that it can survive the coronavirus outbreak shutdown.
The company acknowledged in early June that it has operated with no income over the past couple of months. The coronavirus pandemic has forced the company to close all of its more than 1,000 theaters across the country and lay off or furlough 600 corporate employees.
“We are generating effectively no revenue,” AMC Entertainment said in a regulatory filing.
The company claims that it lost between $2.1 billion and $2.4 billion in the first quarter, and its revenue dipped to $941.5 million, which was down roughly 22%. That compares to a revenue of $1.2 billion in the same quarter in 2019.
Even when theaters do reopen, the company expects customers to remain hesitant to return. More so, the company is worried that studios will hold off on releasing new films into theaters after the success of recent digital releases.
“Even if governmental operating restrictions are lifted in certain jurisdictions, distributors may delay the release of new films until such time that operating restrictions are eased more broadly domestically and internationally, which may further limit our operations,” the company said.
AMC has had a public dispute with Universal over its decision to release “Trolls World Tour” in theaters and on-demand on the same day. NBCUniversal CEO Jeff Shell suggested the studio could start to do more simultaneous releases, even after theaters reopen. That statement led AMC to say it would no longer showcase Universal films in its theaters.
As a result of the complexity of issues surrounding the safety of movie theaters and the long-term viability of its business model, AMC writes that “…substantial doubt exists about our ability to continue as a going concern for a reasonable period of time.”