SAN FRANCISCO—The Alamo Drafthouse theater chain is in jeopardy due to the financial strain as a result of the Coronavirus pandemic. On Wednesday, March 3, the company announced they will voluntarily file for Chapter 11 bankruptcy. The company will sell its assets to its senior lender group which includes Altamont Capital Partners & affiliates of Fortress Investment Group.
The company stated that financing this decision provides them help to keep the company afloat until businesses open back up. The theater chain has been forced to close multiple theaters and close some permanently due to COVID-19. Alamo’s downtown Austin location, which was known as the Ritz and has been open for 90 years, will be closed permanently along with two other locations in Kansas City, Missouri and New Braunfels, Texas. The company was forced to furlough 80 percent of its employees with some being laid off permanently.
Tim League, the company’s founder, stated, “Because of the increase in vaccination availability, a very exciting slate of new releases and pent-up audience demand, we’re extremely confident that by the end of 2021, the cinema industry — and our theaters specifically — will be thriving.” On the company’s Instagram page, a post read: “Alamo Drafthouse isn’t going anywhere-promise.” There is no word on the future of SF New Mission theater.
