The Alamo Drafthouse Cinema chain of movie theaters went bankrupt and sold nearly all of its assets to new and original investors.
Texas Movie Theater Alamo Drafthouse Cinema You have filed for bankruptcy protection. Like all cinemas, the popular dinner theater chain has received huge success since it first closed nearly a year ago due to the coronavirus pandemic. Alamo Drafthouse reopened Aug. 21 in select locations, with safety precautions in place, including social distancing and wearing masks.
Now for Term, Alamo Drafthouse Cinema is filing for bankruptcy protection. The theater chain filed for voluntary Chapter 11 in Delaware Court, and agreed to sell a substantial amount of its assets to Altamont Capital Partners and affiliates of the Fortress Investment Group, founder Tim League, and other original investors in the company. According to the company, operations will continue as usual and the sale will give the business the financial stability it needs to get back on track.
The bankruptcy has led Alamo to permanently close three of its underperforming locations, including Austin and theaters in Kansas City, Missouri and New Braunfels, Texas, and the development of a theater in Orlando, Florida. Additional cinemas could also close as the company evaluates “the health of all leases” during the presentation. The company also requests that the bankruptcy court approve a 75-day deadline for the transaction process.
The chain, which was founded in Austin in 1997, has 37 theaters in US locations such as Los Angeles and Brooklyn. Alamo Drafthouse Cinema has long been famous among moviegoers who are passionate about serving movie-themed food and drinks and hosting themed screenings and other events. The network is also known for enforcing strict rules of theater etiquette for the best possible movie experience. Moviegoers enjoy cinemas to screen modern movies as well as foreign and independent movies.
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