Alamo Drafthouse Cinema filing for bankruptcy

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Posted at 11:28 AM, Mar 03, 2021
and last updated 2021-03-03 18:51:10-05

Alamo Drafthouse Cinema has voluntarily filed for Chapter 11 bankruptcy as the pandemic continues to affect both national and local businesses.

According to the Austin American Statesman, “The Alamo Drafthouse Ritz in downtown Austin, as well as locations in New Braunfels and Kansas City, Missouri, will be permanently closed. All other theaters that are currently open will continue to be open in accordance with local pandemic guidelines.”

The Austin American Statesman says the movie theater chain has entered an agreement “for the sale of its assets to a senior lender group”, which company leaders say will help stabilize the business during the pandemic and return them to growth.

Alamo Drafthouse closed it's doors in March 2020 when many businesses were forced to close due to the pandemic. Even after Gov. Greg Abbott allowed theaters to re-open soon after, they refused, and decided to open later in the summer with some new safety protocols in place. After Gov. Greg Abbott announced the end of Texas' mask mandate and the opening of businesses at 100 percent capacity, Alamo Drafthouse released a statement saying they were "only following the guidance of the CDC and medial experts, not politicians."

According to their website, Alamo Drafthouse was founded in Austin, Texas in 1997. The Austin American Statesman says that prior to the pandemic, “the chain operated 36 cinema-eateries in 22 markets across 10 states.”