Alamo Drafthouse Cinema files for Chapter 11 bankruptcy, cites effects of coronavirus pandemic
Alamo Drafthouse Cinema announced Wednesday that it has voluntarily filed for bankruptcy as the coronavirus pandemic continues to have an effect on its business.
The Austin-based company also announced it entered into an purchase agreement for the sale of its assets to a senior lender group. The group includes Altamont Capital Partners, which was already an investor in the company, along with new investor Fortress Investment Group. Alamo Drafthouse co-founder Tim League, who is currently the company's executive chairman, is also part of the investor group.
The Alamo Drafthouse Ritz in downtown Austin, as well as locations in New Braunfels and Kansas City, Missouri, will be permanently closed. All other theaters that are currently open will continue to be open in accordance with local pandemic guidelines, the company said.
"The transaction will provide the company with much-needed incremental financing to stabilize the business during the pandemic, which has had an unprecedented and outsized impact upon the movie theater and dining industries," the company said in a written statement.
Read more: https://www.statesman.com/story/news/2021/03/03/alamo-drafthouse-files-chapter-11-bankruptcy-cites-effect-pandemic/6901907002/
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