Texas-based exhibitor Alamo Drafthouse, a favorite amongst cinephiles for its dine-in service and fan-centric approach, has filed for Chapter 11.
The bankruptcy filing is a part of an asset purchase agreement with Altamont Capital Partners, a previous investor in the company, as well as affiliates of their new backer Fortress Investment Group.
Operations will continue as normal and the Chapter 11 process and sale will reportedly give the chain the capital it needs to continue operating as it emerges from the public health crisis that left many of its locations closed for months.
The agreement also involves the sale of substantially all its assets across its roughly 40 locations. It will close down a few underperforming locations and restructure its lease obligations. One such place according to their website is its The Ritz cinema which it began operating from 2007 in the company’s home base of Austin.
Founder Tim League will remain involved and is among the lender group buying the assets.
Source: Variety
