Alamo Drafthouse exits bankruptcy, set to expand
Texas-based chain is poised to open five new theaters
After COVID-19 dealt a huge blow to movie theaters everywhere, Alamo Drafthouse is out of bankruptcy and in expansion mode.
The Austin-based company said it has emerged from its Chapter 11 filing with the completion of a sale to an investor group that includes private equity firm Altamont Capital Partners, Fortress Investment Group and Alamo Drafthouse founder Tim League.
The news follows the company’s biggest box office weekend since the pandemic began, including what it said was a stellar return of its Los Angeles theater, which saw sold out shows for all films and all showtimes for the holiday weekend from Friday to Monday.
“We’re so thrilled to be reopening theaters across the country and welcoming back audiences for an unparalleled moviegoing experience with films we’ve been eagerly awaiting for over a year now,” said Alamo Drafthouse CEO Shelli Taylor.
Now, the movie chain is planning new locations. Alamo is entering Manhattan with a 14-screen theater in the financial district that is expected to open this fall.
A previously announced Staten Island theater is in development with the Flying Guillotine, a martial arts-inspired bar in partnership with hip hop group WuTang Clan founder Robert Diggs, who is better known by his stage name RZA.
With franchise partner Cojeaux Cinemas, Alamo is opening its first theater in Washington, D.C., with a nine-screen complex expected to open in late 2021. Cojeaux is also opening a nine-screen theater in Arlington, Va., planned for spring of 2022.
Cojeaux Cinemas currently operates three other Alamo Drafthouse franchises in Virginia.
Meanwhile, Alamo Drafhouse is opening its first theater in St. Louis with a 10-screen theater expected to open in spring of 2022.
Like all indoor movie theaters, Alamo Drafthouse has faced difficulties since COVID hit, putting extreme stress on the entertainment industry. After closing locations in March 2020, the company declined to reopen its Texas theaters right away when Gov. Greg Abbott allowed indoor cinemas to resume operation. Alamo later reopened some of its locations late in summer 2020.
In the meantime, Alamo Drafthouse laid off employees, created a COVID-19 relief fund and hired Taylor, a former Starbucks executive, as CEO. League shifted into a new role as executive chairman, and launched a streaming platform, Alamo On Demand. The brand’s signature film festival, Fantastic Fest, will be an in-person event in September at the company’s theater on South Lamar Boulevard in Austin.
Alamo Drafthouse was founded in Austin in 1997 by League and his wife, Karrie. It has grown into an influential national chain and a pioneer of the dinner-and-amovie model, also branching out into merchandising and film preservation arms.
The first Alamo Drafthouse was on Colorado Street. Prior to the pandemic, the chain operated 36 cinema-eateries in 22 markets across 10 states. It currently has 39 locations.
In March, the Texas company said it voluntarily filed for bankruptcy as the coronavirus pandemic continued to hammer its business.
The Alamo Drafthouse Ritz in downtown Austin, as well as locations in New Braunfels and Kansas City, Mo., were permanently closed.
The company also announced it entered into an purchase agreement for the sale of its assets to a senior lender group including Altamont Capital Partners, which was already an investor in the company, along with new investor Fortress Investment Group. League was also part of the investor group.
“We’re so grateful to our incredible partners at Altamont and Fortress, who are completely aligned with our vision for Alamo Drafthouse’s growth,” Taylor said. “It’s incredibly exciting to be back on that path so we can bring the Alamo Drafthouse experience to new locations around the country, including our very first locations in Manhattan, St. Louis and D.C.”