AMC Plans to Close More Theaters in Underperforming Locations

The world’s largest cinema chain sees more value in shrinking than growing.

Sean Goodman, chief financial officer of AMC Entertainment Holdings Inc., told investors Tuesday there’s “a significant opportunity” to keep closing underperforming theaters. The company has the option to renew or terminate roughly 85 leases a year — about 10% of its locations.

Closing locations is part of AMC’s strategy to stabilize its finances, as well as opening a smaller number of new theaters. Amid tepid growth for the cinema industry as fans watch more movies at home, AMC has refinanced debt, pushing out maturities to stave ...