As restaurants and movie theaters continue to struggle amid the pandemic (which is still very much ongoing, despite the capitalist delusions of Texas Governor Greg Abbott), several businesses have had to make some tough financial decisions to stay afloat. Beloved theater chain Alamo Drafthouse has filed for bankruptcy, and while that may not sound like the most promising development for the company, the move likely ensures that little will.
Alamo Drafthouse, the independent theater chain known for its dine-in meal service, including food and drink specials inspired by films, has filed for Chapter 11 bankruptcy. The Austin-based chain’s assets will be sold to private-equity firm Altamont Capital Firms, a previous backer of the company, and affiliates of investment management firm Fortress Investment Group,
Variety reports. Tim League, co-founder and executive chairman of Alamo Drafthouse, is among the group of buyers and will continue to be involved with the company.
“We’re excited to work with our partners at Altamont Capital Partners and Fortress Investment Group to continue on that path of growth on the other side of the pandemic, and we want to ensure the public that we expect no disruption to our business and no impact on franchise operations, employees and customers in our locations that are currently operating,” CEO Shelli Taylor said in a statement.
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Alamo Drafthouse Files For Chapter 11 Bankruptcy Protection An Alamo Drafthouse theater
Austin-based theater chain Alamo Drafthouse Cinema has voluntarily filed for Chapter 11 bankruptcy protection, one of the first theater groups to do so amid severe financial troubles for the industry in the wake of the coronavirus pandemic.
As part of the restructuring, Alamo Drafthouse has entered into an agreement that will involve selling assets to affiliates of Altamont Capital Partners and Fortress Investment Group.
The firm has already announced that it will close three theaters: New Braunfels and the original downtown Austin location in Texas, as well as the theater in Kansas City, Missouri.
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.