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Alamo Drafthouse Files For Bankruptcy As Theaters Continue to Struggle
iheart.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from iheart.com Daily Mail and Mail on Sunday newspapers.
Alamo Drafthouse Files For Bankruptcy As Theaters Continue to Struggle
iheart.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from iheart.com Daily Mail and Mail on Sunday newspapers.
Even as some coronavirus-related business restrictions begin to lift, and New York movie theaters prepare to open for the first time in a year, the theater industry is not out of the woods. Today the Alamo Drafthouse, the popular chain of multiplexes with in-theater food and beverage, has filed for Chapter 11 bankruptcy.
The move, per
Variety, is part of a plan to keep the theater chain going under new owners:
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.’
RALEIGH, N.C. (WTVD) The COVID-19 pandemic is taking a toll on theaters and the Alamo Drafthouse Cinema is no exception.
The Austin-based dine-in cinema chain filed for Chapter 11 bankruptcy on Wednesday closing three of its locations nationwide.
Through the filing, the company will sell its assets to a group of investors, including Altamont Capital Partners, Fortress Investment Group and Tim League, Alamo Drafthouse founder and executive chairman, among others. The transaction will provide the company with much-needed incremental financing to stabilize the business during the pandemic, which has had an unprecedented and out-sized impact upon the movie theater and dining industries, the company said in a statement obtained by the News & Observer.
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