Alamo Drafthouse Cinema, the Texas-based theater chain that has become a favorite with cinephiles for its dine-in service and fan-forward approach to exhibition, has filed for Chapter 11.
The bankruptcy filing comes as part of an asset purchase agreement with Altamont Capital Partners, a previous investor in the company, as well as affiliates of Fortress Investment Group, a new backer. The company says that operations will continue as normal and the Chapter 11 process and sale will give it the capital it needs to continue operating as it emerges from a public health crisis that left many of its locations closed for months. The agreement involves “the sale of substantially all its assets.”
Founder Tim League will remain involved with the company and is among the lender group buying the assets. League became the company’s executive chairman in April, with Shelli Taylor, a former Starbucks executive, assuming the role of CEO. Alamo Drafthouse runs roughly 40 locations and is headquartered in Austin, Texas….