The Almo Draftshaus theater chain, which operates some 40 locations nationwide and is known for its curated screenings, advanced food and beverage options, and over-the-top fan interactions, announced Wednesday that it was a Chapter 11 bankruptcy Was filed for protection.
As part of the process, the company will sell its assets to its senior lender group, including Altamont Capital Partners, an affiliate of Fortress Investment Group, and the company’s founder, Tim Leigh.
The company said the move would provide the company with the necessary financing for the pandemic season, which has had a huge impact on the movie theater business. Many theaters across the country have been forced to close, at least temporarily, and film studios have delayed their blockbuster releases.
Almo, based in Austin, Texas, is one of the most prominent film series to seek Chapter 11 protection during the epidemic.
“Due to increased vaccination availability, new releases and a very exciting slate of pent-up audience demand, we are very confident that by the end of 2021, the cinema industry – and our theaters in particular – will be thriving,” Mr. . The league said in a statement. He said, these are difficult times and during this bankruptcy we have to take tough decisions about our lease portfolio. We hope that our landlord and other seller partners will work with us to ensure a successful emergence from bankruptcy and viable business. “
The downtown Austin location of the Alamo, the 90-year-old movie palace known as The Ritz, Will be closed permanentlyKansas City, Mo. And with locations in New Braunfels, Texas. Development on a proposed site in Orlando will be closed.
Other locations of the company that are planned to remain operational during the restructuring. And plans to open a new Brooklyn location remain on track, though it won’t be ready on Friday, the day New York says movie theaters may reopen.
On Tuesday, Gov. Greg Abbott of Texas abolished the state’s facade mandate and allowed businesses to open at 100 percent capacity. The Alamo, in a tweet against the decision, told patrons that the company’s mandatory facade policy and a six-foot social distance to its Texas locations would remain.
“We are following the guidance of CDC and medical experts only, not politicians” the company said.