Alamo Drafthouse files for Chapter 11, keeping COVID safety measures amid TX reopening
Texas-based cinema institution Alamo Drafthouse has filed for Chapter 11 bankruptcy, Variety reports. They've entered into an agreement with previous investors Altamont Capital Partners, and new backers, affiliates of Fortress Investment Group, that involves "the sale of substantially all its assets." Variety says that according to the company, 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." A few locations are set to close, however.
"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,” CEO Shelli Taylor said in a statement. "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."
Meanwhile, Alamo is also in the news today for their response to Governor Greg Abbott's controversial announcement of the lifting of all coronavirus restrictions on Texas businesses, and the end of the state's mask mandate, effective next week (3/10). In a statement on social media, the chain wrote, "Alamo Drafthouse's mandatory mask policy remains in place, as well as our 6' social distancing protocols, and all of the other safety measures we've had in place across the country since last year."
"We are only following the guidance of the CDC and medical experts, not politicians," their statement continues. "Right now, at what we hope is the beginning of the end of COVID, the health of our teams and our guests remains this company's top priority."