Alamo Drafthouse files for bankruptcy and will close 2 theaters in Texas
AUSTIN (KXAN) – Alamo Drafthouse, the famous Austin-based restaurant-theater chain, has filed for bankruptcy and announced a sale. The Chapter 11 bankruptcy filing will allow Alamo Drafthouse to raise the funds it needs to continue operating amid the long pandemic.
As part of the bankruptcy, Alamo Drafthouse will close underperforming sites, including the Alamo Drafthouse Ritz site in downtown Austin on Sixth Street.
Two other closures were also announced – one in New Braunfels and one in Kansas City, Missouri. And the cinema chain will definitively stop the development of a theater in Orlando. Further closures could occur as Alamo Drafthouse assesses “the state of all leases during the Chapter 11 process.”
The bankruptcy and sale will also allow Alamo Drafthouse to “restructure its lease obligations and other contracts to give the company the opportunity to bounce back into an uncertain future.”
Alamo Drafthouse has 41 theaters in 10 states, including six in Austin. Only three of these theaters are currently open and each offers a reduced number of movie options. Its last location in Mueller remained closed during the pandemic. The same goes for the location of the Ritz, which is now permanently closed.
Founder Tim League will remain involved with the business. It is part of the group of lenders who buy the assets.
Statement from CEO Shelli Taylor:
Alamo Drafthouse had one of its most successful years in company history in 2019 with the launch of its first Los Angeles theatrical and box office sales that topped the rest of industry.
“We are delighted to be working with our partners at Altamont Capital Partners and Fortress Investment Group to continue on this growth path on the other side of the pandemic, and we want to assure the public that we do not expect any disruption in the future. our business and has no impact on the franchise operations, employees and customers of our currently operating sites.
Statement from founder Tim League
“Due to the increasing availability of vaccines, a very exciting list of new releases and pent-up public demand, we are extremely confident that by the end of 2021, the film industry – and our cinemas in particular – will flourish.
“We are fortunate to have an incredibly talented and passionate team who are eager to welcome our loyal fans to our theaters for a cinematic experience that cannot be duplicated. Having said that, these are tough times and during this bankruptcy we will have to make some tough decisions about our lease portfolio.
“We hope that our owner and other supplier partners will work with us to help ensure a successful exit from bankruptcy and a viable future business.”
Alamo Drafthouse statement
In a statement released Thursday, the company said: “Alamo Drafthouse is not going anywhere – promised.” They will continue to show movies this weekend at each location.