The Austin-based Alamo Drafthouse movie theater chain is filing for bankruptcy and closing the iconic location on Austin's Sixth Street.
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Last week came word that Houston's River Oaks Theatre, operated by the Landmark chain, could close if a deal on its expiring lease isn't reached with Weingarten Realty. Now, the Austin-based Alamo Drafthouse chain, a pioneer in the concept of dining and drinking while movie-watching, is filing for chapter 11 bankruptcy and closing two Texas locations, including the beloved Ritz theater on Austin's 6th Street.
In addition to the Austin venue, others to be closed include locations in New Braunfels and Kansas City while plans for a new Alamo in Orlando have been scrapped, according to USA Today. The Alamo operates 18 multiplexes directly while another 23 are franchises. For now, the bankruptcy appears to have no impact on the Houston area's Alamo Drafthouse in Katy.
"It sends shock waves through the industry," says Jeff Bock, senior box office analyst for Exhibitor Relations Co., an entertainment-industry research and data firm in Los Angeles. "Considering Alamo is at the forefront of (the theatrical experience) in terms of people loving what Alamo does. (This is) a company that does it right, does it the best way possible, in my estimation...If Alamo can't survive...we're still in for some rough waters."
Alamo is being restructured with assets being sold to affiliates of Altamont Capital and Fortress Investment Group. Alamo founder and executive chairman Tim League is one of the buyers. This will allow Alamo to tap into more financing that the company hopes will see it through to the end of the pandemic. The deal has to still be approved by a bankruptcy judge.