Alamo Drafthouse Cinemas Files for Bankruptcy, Seeks Buyer

AUSTIN, Texas—Alamo Drafthouse Cinemas, a Texas-based dine-in theater chain, said Wednesday that it has filed for bankruptcy due to financial woes during the pandemic. The company plans to find a buyer during its Chapter 11 bankruptcy, which allows it to continue operating while its managers and advisers work on repaying creditors. “The transaction will provide the company with much-needed incremental financing to stabilize the business during the pandemic, which has had an unprecedented and outsized impact upon the movie theater and dining industries,” the company said in a statement. “More importantly, it will position Alamo Drafthouse to return to growth and continue executing on its long-term strategic vision.” In its bankruptcy petition, Alamo Drafthouse listed assets and liabilities of as much as $500 million each. Court papers show that private equity firm Altamont Capital Management owns 40 percent of the company. Alamo Drafthouse, like many others in the entertainment industry, … Read More