Thursday, March 4, 2021

[UPDATE] Alamo Drafthouse Declares Chapter 11, Closes & Cancels Select Locations

Alamo Drafthouse Cinema, the popular theater chain known for premium food and drink options and their strict no-talking rules, has filed for Chapter 11 bankruptcy.  The Austin-based company announced the bankruptcy Monday as well as an asset purchase agreement with partners that will assist the chain in continuing operations and remaining a going concern.  The chain, which operates forty theater locations nationwide, sold itself to Altamont Capital Partners, a previous investor in the company, to affiliates of Fortress Investment Group, a new backer, and to Tim League, Alamo's founder.

Many Alamo locations around the country remain closed due to the pandemic, which the company cited in its filing as a key reason it was forced to declare bankruptcy.  The company indicated that it is permanently closing three outposts, including its two screen location at the historic Ritz theater in downtown Austin which opened in 2007.  Alamo also plans to close its eleven screen theater in New Braunfels, Texas which opened in late 2013 and its six screen theater in Kansas City, Missouri which opened in mid-2012 in place of a former AMC Theatres run location.  

In the filing the company also noted that development of a ten screen Orlando, Florida, location will also be "permanently ceased."  The Orlando location, first announced in November 2019, was to help anchor phase two of the new 450,000 square foot Vineland Pointe lifestyle center.  

The company indicated that additional locations might also close as the company evaluates the "health of all leases" during the bankruptcy proceedings.

The company made no mention of the previously announced location that was to open as part of the Assembly Yards development on the site of the old GM plant in Doraville.  Alamo Drafthouse was first announced as part of the project in September 2019, but there has been virtually no mention of the project or the theater in more than a year.  Disappointingly, ToNeTo Atlanta was able to confirm with sources with knowledge of the project that Alamo is no longer part of the development and that the development as a whole is likely changing significantly from what was announced in 2019.  

News of the theater chain's planned Atlanta entry was met with tremendous enthusiasm on ToNeTo Atlanta with one reader commenting: 

"THIS.... may be the best news I've ever read on this site! I'm beyond excited. I've wanted to visit the Alamo Drafthouse for years. Instead we're getting one of our own! This is amazing. Best news I've heard all year."

In the release announcing the bankruptcy and transactions, League was optimistic about Alamo's future: 

"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," he said.

That said, with luck, League is right and things do get significantly better for his theaters (and others, too) and perhaps an Atlanta market entry, while cancelled for now, does eventually happen. 

Have you ever been to an Alamo Drafthouse?  Are you surprised to see Alamo Drafthouse declare bankruptcy?  Where else in Atlanta do you think Alamo Drafthouse should consider if they eventually reconsider an Atlanta market entry?

Please share your thoughts below.  

1 comment:

Skrybe said...

Hmm... That quote looks very familiar. LOL I do still hope they open here. We'll see what the future brings.

Related Posts Plugin for WordPress, Blogger...