Why AMC's Audacious Growth Strategy Makes Sense
Movie theater chain AMC (NYSE: AMC) was in rough shape even before the pandemic. The company was bogged down with billions of dollars in debt, partly the result of an acquisition spree that made it the largest U.S. movie theater chain. AMC acquired Carmike Cinemas, Nordic Cinema Group, and Starplex Cinemas between 2015 and 2017.
When the pandemic hit, the collapse in revenue from theater closures left the fragile company in a difficult position. AMC raised $1 billion in cash through equity and debt sales between April and November last year, and it had raised another $917 million by early January of this year. That influx of cash bought the company time, but its business was still broken.
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Source Fool.com
