On Wednesday, the Texas-based Alamo Drafthouse Cinema filed for Chapter 11 bankruptcy. The filing was part of an asset purchase agreement with Altamont Capital Partners and Fortress Investment Group, which involved the sale of substantially all its assets.
With the bankruptcy, the company will be closing a number of its underperforming locations and restructuring its lease obligations. Alamo Drafthouse operates roughly 40 locations, with its headquarters in Austin, Texas.
“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,” CEO Shelli Taylor said 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.”
