Alamo Drafthouse Cinema Files for Chapter 11 Bankruptcy
Posted on 03/03/2021
Alamo Drafthouse Cinema is an Austin, Texas-based theater chain that has a dining service. Alamo Drafthouse Cinema has filed for Chapter 11 bankruptcy. The filing is linked to an asset purchase agreement with Altamont Capital Partners, a previous investor in the company, as well as affiliates of Fortress Investment Group, a new investor. The US$ 20 million debtor-in-possession credit facility is led by Altamont and Fortress.
Alamo Drafthouse will have operations continue as normal and the sale will gave the theater chain the capital it needs to emerge from the COVID-19 lockdowns. The agreement involves the sale of substantially all its assets. Alamo Drafthouse will close down a few underperforming locations. They will also restructure its lease obligations.
Tim League is the founder of the theater chain and will be in the lender group that is buying the assets.
In a March 3, 2021 blog post by the company, “That’s how Alamo Drafthouse founder Tim League christened Alamo Drafthouse at The Ritz on November 1st, 2007. For nearly thirteen years, The Ritz – the spiritual successor to our original location at 409 Colorado – has been the beating, fiery, cinephile heart of Alamo Drafthouse in Austin. A ninety year old classic movie palace, Alamo Drafthouse Ritz hosted Hollywood legends, welcomed international weirdos as home to SXSW Midnighters, and created countless new film lovers through series like Terror Tuesday, Weird Wednesday, and Master Pancake Theater.
Last March, we temporarily closed The Ritz along with every other Alamo Drafthouse location. Nearly one year later, we’re incredibly sad to tell you that because of the ongoing impact of COVID, we will not be reopening The Ritz.”