(Photo: Wikipedia)

As Gwen Guthrie so memorably put it in her 1986 hit song, ain't nothin' goin' on but the rent–even during a pandemic.

AMC Theatres has been sued by the owners of Palm Springs Mile shopping mall in Hialeah, Florida, for nonpayment of rent. AMC had told landlords they would not be paying rent because its theaters had been closed due to the coronavirus outbreak, Variety reports.

The lawsuit, filed by Palm Springs Mile Associates, Ltd., in Miami federal court, claims that by not paying the $52,153.87 monthly rent on the Hialeah 12 cinema, AMC is in breach of contract, which mandates immediate payment of the balance of the lease.

"The Landlord recognizes the challenges posed by COVID-19, including on its own business," the lawsuit reads. "Under the express terms and provisions of the Lease and Guaranty, however, Defendant is obligated to pay Rent and that obligation is not excused."

Palm Springs Mile Associates is seeking in excess of $7.5 million in damages.

On March 17, AMC shut down its theaters worldwide. The company had informed landlords it would not be paying rent. AMC also furloughed more than 600 corporate employees, including CEO Adam Aron.

Wall Street analysts have predicted a bleak forecast for AMC. In a report released earlier in April, Eric Handler of MKM Partners wrote, "Based on our view that theatres will be closed until at least August and our belief that AMC lacks the liquidity to stay afloat until that time, we expect the company will soon be faced with filing for bankruptcy." Handler also said the cinema chain was "the exhibition company we view with the least financial flexibility."

AMC recently announced a $500 million bond offering in the hopes of shoring up its finances. The move would help it stay solvent through a potential November reopening, it said.

Although the pandemic has closed movie theaters across the country, there are currently fewer than 25 drive-in theaters open for business. According to The Hollywood Reporter, those theaters have seen a "steady, but not spectacular" stream of ticket sales. One such theater is the Starlight Drive-In in Atlanta, Georgia, which reopened Wednesday, April 22. AMC Theatres released a statement on Friday saying they will remain closed until new films go into production, 11 Alive reports.

Georgia Gov. Brian Kemp included movie theaters in his plan to reopen the state's economy, saying they could resume selling tickets today. At least one filmmaker has publicly expressed opposition to the idea: In an email to Vanity Fair, Oscar winner Spike Lee wrote, "Open Movie Theatres Now? Hell To Da Naw. I Got Alot More Movies To Make, Not Rollin' Da Dice Wit' Da Only Life I Got. TESTING. TESTING And Mo' TESTING."

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Richard Binder

Richard Binder, based in New York, is part of the social media team at ALM. He is also a 2014 recipient of the ASPBE Award for Excellence in the Humorous/Fun Department.

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