Alamo Drafthouse Files For Chapter 11 Bankruptcy

Alamo Drafthouse has filed for Chapter 11 bankruptcy on Wednesday, USA Today reports.

The movie theater chain is hoping to stay in business despite suffering financially due to the ongoing pandemic. Like other movie houses, Alamo Drafthouse was forced to temporarily close its theaters beginning last year.

The company has cut expenses and implemented new safety measures to protect moviegoers. However, just a third of the company's theaters have been able to reopen.

Locations in Austin, Texas, Kansas City, Missouri, and New Braunfels, Texas, are planning to close, and development of a new location in Orlando, Florida will also cease.

"The company will continue to evaluate the health of all leases during the chapter 11 process and make determinations about additional lease terminations in deciding which locations will be part of the go-forward business," Alamo said.

Alamo Drafthouse chief financial officer Matthew Vonderahe said he believes a sale of the company would present "a viable path forward." A prospective sale has been lined up to a group of current lenders and investors in a deal that would need to be approved by a bankruptcy judge.

Read more on USA Today.

To post a comment, you must register and login.