The Alamo Draft House has become my go-to theater experience. Their experiences are above and beyond the best in the theater industry so it’s sad to report the following. Alamo Drafthouse, has filed for Chapter 11 bankruptcy. The filing comes along with an asset purchase agreement with Altamont Capital Partners, a previous investor in the company. A new backer, Fortress Investment Group, and its affiliates are also a part of the purchase agreement.
While the filing is sad news, this will provide the chain the capital it needs to allow operations to run as normal as they emerge from the pandemic. Alamo Drafthouse has around 40 locations with other prominent locations being Los Angeles and Brooklyn. As part of the bankruptcy filing, Alama Drafthouse will close down a few underperforming locations and restructure their lease obligations. Shelli Taylor, who will be assuming the role of CEO, had this to say about the filing,
“Alamo Drafthouse had one of its most successful years in the company’s history in 2019 with the launch of its first Los Angeles theater and box office revenue that outperformed the rest of the industry. We’re excited to work with our partners at Altamont Capital Partners and Fortress Investment Group to continue on that path of growth on the other side of the pandemic, and we want to ensure the public that we expect no disruption to our business and no impact on franchise operations, employees and customers in our locations that are currently operating.”
Here’s hoping the theater can continue to succeed.