Alamo Drafthouse Cinema Files For Bankruptcy As Pandemic Continues; Raleigh location remains open – for now
The Austin-based movie theater chain filed for Chapter 11 bankruptcy on Wednesday, shutting down three of its sites nationwide.
Through the deposit, the company will sell its assets to a group of investors, including Altamont Capital Partners, Fortress Investment Group and Tim League, founder and executive chairman of Alamo Drafthouse, among others.
“The transaction will provide the company with additional financing that is much needed to stabilize the business during the pandemic, which has had an unprecedented and disproportionate impact on the film and restaurant industries,” the company said in a statement obtained by the News & Observer.
So far, the company has announced that it will close its Austin and New Braunfels, Texas sites, as well as a Kansas City site.
As for the retro-themed location of New Bern Avenue in Raleigh, its fate remains unanswered.
Since the COVID-19 pandemic, the Alamo Drafthouse has closely followed state directives in accordance with executive orders from Governor Cooper. The movie theater chain has a mandatory mask policy and encourages social distancing of 6 feet.
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