The beloved Texas-based cinema franchise has filed for bankruptcy.
It’s a sad day for cinephiles. Alamo Drafthouse, the beloved gastronomic cinema, has filed for Chapter 11 bankruptcy, closed two of their theaters, and has sold to Altamon Capital Partners and Fortress Investment Group.
There’s no secret that the pandemic has hit theaters hard this past year. Already struggling with the competition posed by at-home streaming services, cinemas across the country were forced to shutter their doors. While Alamo Drafthouse have reopened their theaters for the past few months, the theater chain announced today that it had filed for bankruptcy.
“Alamo Drafthouse had one of its most successful years in the company’s history in 2019 with the launch of its first Los Angeles theater and box office revenue that outperformed the rest of the industry,” said CEO Shelli Taylor in a statement.
“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.”
Founder, Tim League, also made a statement regarding the recent partnership, and the theater chain moving forward:
“Because of the increase in vaccination availability, a very exciting slate of new releases, and pent-up audience demand, we’re extremely confident that by the end of 2021, the cinema industry – and our theaters specifically – will be thriving,” said League.
“We are fortunate to have an incredibly talented and passionate team who are eager to welcome our loyal fans back to our theaters for a cinematic experience that can’t be replicated. That said, these are difficult times and during this bankruptcy we will have to make difficult decisions about our lease portfolio. We are hopeful that our landlord and other vendor partners will work with us to help ensure a successful emergence from bankruptcy and viable future business.”