AMC to reopen more cinema theaters in the United States

(Reuters) – AMC Entertainment Holdings , the largest U.S. theater chain, said on Monday it expects to reopen about a dozen locations in New York state starting Oct. 23 and plans to have more than 530 theaters open in the country by the end of the month.

Shares of the theater chain operator, that have slumped nearly 60% this year, were up more than 5% at $3.20 in premarket trading.

New York Governor Andrew Cuomo said on Saturday movie theaters outside of New York City will be allowed to reopen on Oct. 23 after a months-long hiatus spurred by the COVID-19 pandemic.

While bigger chains such as AMC Entertainment, Cineworld Group and others have reopened many locations, audiences have been thin, with a delay in movie releases an added setback for the entertainment industry.

Small and mid-sized theater companies have said they may not survive the impact of the pandemic.

Last week, AMC’s Chief Executive Officer Adam Aron told Reuters the company may need to raise additional capital either entirely or mostly through equity.

Earlier this month, AMC had said that more than 80% of its theaters in the country would remain open as several new movies are lined up for release in October and November.

The move came after Cineworld, the world’s second-biggest cinema operator, said earlier this month it would close all its screens in the U.S. and Britain after studios delayed major releases such as the latest James Bond film.

(Reporting by Akanksha Rana in Bengaluru; Editing by Shounak Dasgupta)