AUSTIN (1080 KRLD)- The Austin-based theater chain Alamo Drafthouse, a dine-in movie theater, has filed for Chapter 11 bankruptcy.
The company operates around 40 locations across the country. Several locations in the Dallas-Fort Worth area have been closed due to the pandemic. The chain is also being sold.
KRLD's business analyst David Johnson says, "They'll continue to exist in some form. That's sort of the ways these companies are remaking themselves. But, it's without the leadership that got them there."
The company says the Alamo Drafthouse Ritz in downtown Austin and locations in New Braunfels and Kansas City, Missouri, will be closed.
“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,” says CEO Shelli Taylor according to Deadline.
She continued, “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.”