Theater Stocks Plunge After Cineworld Shutdown Caps ‘Lost Year’
- British company to suspend operations after James Bond delay
- Cinemas had expected audiences to start returning in autumn
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Shares of movie-theater companies fell on Monday after Cineworld Group Plc decided to temporarily suspend operations at all its American and British movie theaters, the latest sign of how pandemic-related film delays are ravaging the industry.
Credit agencies downgraded Cineworld’s rating over the weekend, warning the company may run out of cash as early as next month. Other theater-chain operators are facing similarly dire economics. AMC Entertainment Holdings Inc., the largest cinema company in the world, was downgraded by S&P Global Ratings last week, with the firm warning that the theater chain may default on its debt.