Austin, Texas-based, dine-in movie theater chain Alamo Drafthouse has filed for Chapter 11 in Delaware Court.
The exhibitor, which buckled under the impact of Covid-19, has more than three dozen cinemas LA, Brooklyn and Northern Virginia. It’s backed by Altamont Capital.
In May, the Phoenix-based franchises of Alamo Drafthouse in Tempe, Gilbert and Chandler filed for bankruptcy. The parent company filing for Chapter 11 makes it one of the highest-profile casualties of the pandemic, that shuttered theaters a year ago and has seen sporadic reopening at limited capacity across the country and a meager offering of films as studios postponed releases. The move comes as a vaccine rollout holds out hope for a turnaround and key markets, like New York and San Francisco, are reopening.
The nation’s largest chain, AMC Entertainment, skirted close to bankruptcy several times but has managed to raise enough cash to see it through this year and a more robust return to moviegoing.
Alamo has entered into a restructuring agreement that calls for it to sell assets to Altamont and Fortress Investment Group. A founder of the chain, executive chairman Tim League, will also be involved.