Austin, Texas-based dine-in chain Alamo Drafthouse has filed for Chapter 11 in the Delaware Court.
The exhibitor, who collapsed under the influence of Covid-19, has more than three dozen movie theaters in LA, Brooklyn and Northern Virginia. It is supported by Altamont Capital.
In May, Phoenix-based Alamo Drafthouse, Tempe, Gilbert and Chandler franchises filed for bankruptcy. The parent company filing Chapter 11 makes it one of the most famous victims of the pandemic, which closed cinemas a year ago and has reopened sporadically across the country with limited capacity and a scant supply of films as studios postponed release. The move comes as the introduction of vaccines raises hopes of a turnaround and re-opens key markets like New York and San Francisco.
The country’s largest chain, AMC Entertainment, has been close to bankruptcy several times but has managed to raise enough cash to hold out this year and make a more robust return to the cinema.
Alamo has entered into a restructuring agreement that includes the sale of assets to Altamont and the Fortress Investment Group. A founder of the chain, CEO Tim League, will also be involved.
MORE
Comments are closed.