Alamo Drafthouse Cinema: Texas-Based Theater Chain Files for Chapter 11

Alamo Drafthouse LA
Alamo Drafthouse

Alamo Drafthouse Cinema, the Texas-based theater chain that has become a favorite with cinephiles, has filed for Chapter 11.

The bankruptcy filing comes as part of an asset purchase agreement with Altamont Capital Partners, a previous investor in the company, as well as affiliates of Fortress Investment Group, a new backer.

The company says that operations will continue as normal and the Chapter 11 process and sale will give it the capital it needs to continue operating as it emerges from a public health crisis that left many of its locations closed for months. The agreement involves “the sale of substantially all its assets.”

Alamo Drafthouse will close down a few underperforming locations and restructure its lease obligations. The company is requesting that the bankruptcy court approve a 75-day timeline for the transaction process and the $20 million debtor-in-possession credit facility led by Altamont and Fortress.

The coronavirus pandemic has decimated the exhibition business, with major studios postponing blockbusters and theaters remaining shuttered for months.

Alamo Drafthouse has attracted loyal fans with its themed screenings and events, as well as its strictly enforced “no talking” policy.