Alamo Drafthouse Cinema, the Texas-based theater chain that has change into a favourite with cinephiles for its dine-in service and fan-forward method to exhibition, has filed for Chapter 11. The chapter submitting comes as a part of an asset buy settlement with Altamont Capital Companions, a earlier investor within the firm, in addition to associates of Fortress Funding Group, a brand new backer. The corporate says that operations will proceed as regular and the Chapter 11 course of and sale will give it the capital it must proceed working because it emerges from a public well being disaster that left lots of its places closed for months. The settlement entails “the sale of considerably all its property.”
Founder Tim League will stay concerned with the corporate and is among the many lender group shopping for the property. League grew to become the corporate’s government chairman in April, with Shelli Taylor, a former Starbucks government, assuming the position of CEO. Alamo Drafthouse runs roughly 40 places and is headquartered in Austin, Texas.
As a part of the chapter, Alamo Drafthouse will shut down just a few underperforming places and restructure its lease obligations. The corporate is requesting that the chapter courtroom approve a 75-day timeline for the transaction course of and the $20 million debtor-in-possession credit score facility led by Altamont and Fortress.
The coronavirus pandemic has decimated the exhibition enterprise, with main studios suspending blockbusters and theaters remaining shuttered for months. Nonetheless, there are indicators it’s rebounding. Cinemas can open in New York Metropolis beginning on March 5 and exhibitors anticipate that Los Angeles will quickly welcome again moviegoers, probably setting the stage for a revival this summer time as vaccinations improve.
Alamo Drafthouse has attracted loyalists with its themed screenings and fan occasions (resembling staged weddings timed to “Star Wars” motion pictures), in addition to its strictly enforced “no speaking” coverage.
“Alamo Drafthouse had one among its most profitable years within the firm’s historical past in 2019 with the launch of its first Los Angeles theater and field workplace income that outperformed the remainder of the trade,” Taylor stated in an announcement. “We’re excited to work with our companions at Altamont Capital Companions and Fortress Funding Group to proceed on that path of development on the opposite facet of the pandemic, and we wish to guarantee the general public that we anticipate no disruption to our enterprise and no affect on franchise operations, workers and clients in our places which can be at the moment working.”