AUSTIN (Talk1370.com) -- Austin-based Alamo Drafthouse Cinema has filed for Chapter 11 bankruptcy protection, and agreed to a sale of "substantially all its assets" to investors.
The development, which was first reported by Variety, is the latest impact of COVID-19 on an Austin-area business.
The filing is part of an asset purchase agreement with Altamont Capital Partners, as well as affiliates of Fortress Investment Group.
The company expects to continue normal operations, and founder Tim League will remain involved with the company. Some underperforming locations are expected to be closed, along with a restructuring of lease obligations.
Currently, the company operates about 40 locations.