RALEIGH, N.C. (WTVD) The COVID-19 pandemic is taking a toll on theaters and the Alamo Drafthouse Cinema is no exception.
The Austin-based dine-in cinema chain filed for Chapter 11 bankruptcy on Wednesday closing three of its locations nationwide.
Through the filing, the company will sell its assets to a group of investors, including Altamont Capital Partners, Fortress Investment Group and Tim League, Alamo Drafthouse founder and executive chairman, among others. The transaction will provide the company with much-needed incremental financing to stabilize the business during the pandemic, which has had an unprecedented and out-sized impact upon the movie theater and dining industries, the company said in a statement obtained by the News & Observer.
Alamo Drafthouse files for bankruptcy, closes theaters in downtown Austin and New Braunfels
Community Impact Newspaper Alamo Drafthouse Cinema filed for Chapter 11 bankruptcy March 3 and announced the closure of two Texas theaters: Alamo Drafthouse Marketplace in New Braunfels and The Ritz in downtown Austin. Through the filing, the company will sell its assets to a group of investors, including Altamont Capital Partners, Fortress Investment Group and Tim League, Alamo Drafthouse founder and executive chairman, among others.
A statement by the company attributed the filing to financial challenges related to the coronavirus pandemic and its outsized impact on the movie theater industry.