As pandemic shutdowns continue to disrupt the movie exhibition industry, Alamo Drafthouse just announced that it has filed for bankruptcy and Chapter 11 protections in Delaware. The arthouse chain plans to restructure the organization and sell its assets to its senior lender group, which includes Altamont Capital Partners, funds managed by Fortress Investment Group LLC, founder Tim League, and other original investors, according to a statement from the company.
The moves are designed to help the business make it through COVID-19 closures until it can resume its long-term growth trajectory that was disrupted over the past year, according to the statement.
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As restaurants and movie theaters continue to struggle amid the pandemic (which is still very much ongoing, despite the capitalist delusions of Texas Governor Greg Abbott), several businesses have had to make some tough financial decisions to stay afloat. Beloved theater chain Alamo Drafthouse has filed for bankruptcy, and while that may not sound like the most promising development for the company, the move likely ensures that little will.
Alamo Drafthouse closing iconic Ritz theater amid bankruptcy Sixth Street s Ritz location is closing. Austin s homegrown movie chain is entering its next act bankruptcy. As part of the Alamo Drafthouse s upcoming court-supervised Chapter 11 bankruptcy process, it will also close three theaters, including its iconic Ritz location in downtown Austin. Along with the Ritz, the Drafthouse will also be closing its New Braunfels Marketplace location as well as a theater in Kansas City. The 90-year-old Ritz has operated as part of the Drafthouse for the past 13 and a half years, playing host to SXSW Film, movie premieres, and countless special events. The theater closed in March 2020 due to the pandemic, and though some Drafthouse locations have since reopened with limited capacity and rentable auditoriums, the Ritz has remained shuttered.