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The bigger the debt the harder they fall. All leveraged businesses will be decimated.
What all these big companies have in common is that they’ve lathered themselves in debt and now the bill is due.
Here is some insight on the state of the restaurant industry.
Quoting from that article, this sums it up as far as traditional restaurants go.
“There’s no pathway back to a viable business. There’s going to be increased labor because of safety, sanitation, preparation, moving tables and chairs, opening duties, closing duties, hosting — everything changes. It will require more labor but we anticipate revenue going down 50 to 70 percent.”
The usual restaurant business model of having as many tables as possible, lots of waitstaff, multiple chefs and cooks, bartenders, busboys, etc, is pretty much out the window.
It looks like Hertz is going to try and restructure under BK protection and stay in business.
It’s a hell of a good time to buy a car, and I imagine Hertz is going to sell a ton of their fleet.
https://variety.com/2020/film/box-office/amc-theatres-bankruptcy-likely-1234575780/ and https://variety.com/2020/film/news/amc-theatres-trolls-world-tour-dispute-1234592445/ .
Stick a fork in AMCrap, they’re done.
Yet, that doesn’t seem to faze Amazon which appear to want to use AM¢ to push themselves ever closer to antitrust:
.https://pymnts.com/amazon-entertainment/2020/amazon-reportedly-eyeing-amc-theatres/
The same thing happened (atleast in threat) to Microsoft in the early 2000’s. Guess what, they survived.
Wait. Microshark were in the cinema exhibition business (a steadily declining business model in the 2010s), were bought out by the Chinese government which continued to run the company into the ground, and were eyeballed by Amazon?
I must have been pretty fucking wasted in the 2000s to have missed that…..
The largest shareholder in AMC Theaters is a Chinese conglomerate called Dalian Wanda Group. They are denying that a bankruptcy is imminent.
https://www.hollywoodreporter.com/news/will-chinas-wanda-group-bail-amc-theatres-1290328
One especially interested party, however, has expressed distain for that estimation: Dalian Wanda Group, the Chinese conglomerate that has been AMC’s largest shareholder since a historic $2.6 billion cross-border buyout in 2012.
“The recent online media speculation that Wanda’s AMC is filing for bankruptcy is pure rumor,” Wanda said Tuesday in a statement on its Chinese-language website hours after the New York Post reported that AMC’s executive team was in talks to hire bankruptcy lawyers.
The statement out of Beijing reignites an urgent question for AMC shareholders and industry watchers alike: Could Wanda, headed by mercurial billionaire Wang Jianlin, move to execute a last-minute rescue?
David Machado will be permanently closing all of his Portland restaurants. “There’s no way back to a viable business,” he told the press. https://pdx.eater.com/2020/5/22/21265284/david-machado-closing-restaurants-covid-coroanavirus-nel-centro-altabira-city-tavern-pullman
This morning on KBNP, I heard an announcement on KBNP that LATAM Airlines, the largest airline in Latin America, is filing for bankruptcy. Here is a CNN story: https://www.cnn.com/2020/05/26/business/latam-chapter-11/index.html
Yesterday, KOMO 1000 reported that by the end of July, Boeing intends to cut its workforce by about 10,000. Now, the figure is up to 12,000. There will be about 6770 layoffs and 5520 buyouts. See https://komonews.com/news/coronavirus/boeing-slashes-12000-jobs-as-virus-seizes-travel-industry
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