Texas-based cinema chain Alamo Drafthouse said Wednesday it has filed for Chapter 11 bankruptcy protection.
The filing comes as part of an asset-purchase agreement with Altamont Capital Partners and affiliates of Fortress Investment Group. Alamo’s operations will run normally as the company goes through the bankruptcy process, which will give it the necessary capital to survive the coronavirus pandemic.
Alamo Drafthouse — which runs around 40 locations around the U.S. — will close down a few underperforming locations and restructure its lease payments as part of the bankruptcy.
Several movie-theater chains have renegotiated deals with lenders and landlords over the past 12 months, trying to find new ways to generate revenue. In its bankruptcy filing, Alamo Drafthouse can restructure its finances and set itself up for a future recovery.
Cinemas have been hit hard in the past year. as major blockbusters were pushed from the release calendar and local government guidelines restricted audience capacity. However, as more vaccines are delivered and states loosen restrictions, there’s a chance that movie theaters could see a boom this summer.
Source: Business - cnbc.com
