As part of the bankruptcy, Alamo Drafthouse will close down a couple of underperforming places and restructure its lease commitments. The company is requesting that the personal bankruptcy court authorize a 75-day timeline for the transaction procedure and the $20 million debtor-in-possession credit facility led by Altamont and Fortress.
The coronavirus pandemic has annihilated the exhibit service, with major studios delaying blockbusters and theaters remaining shuttered for months. There are indications it is rebounding. Cinemas can open in New York City starting on March 5 and exhibitors expect that Los Angeles will quickly welcome back spectators, potentially setting the phase for a revival this summer as vaccinations increase.
Alamo Drafthouse has attracted followers with its themed screenings and fan events (such as staged weddings timed to “Star Wars” motion pictures), along with its strictly enforced “no talking” policy.
” Alamo Drafthouse had among its most successful years in the businesss history in 2019 with the launch of its first Los Angeles theater and ticket office revenue that outperformed the remainder of the market,” Taylor stated in a declaration. “Were thrilled to work with our partners at Altamont Capital Partners and Fortress Investment Group to advance that path of growth on the other side of the pandemic, and we want to guarantee the public that we anticipate no disturbance to our company and no influence on franchise operations, employees and consumers in our locations that are presently running.”
Creator Tim League will remain included with the business and is amongst the lending institution group purchasing the possessions. League became the businesss executive chairman in April, with Shelli Taylor, a previous Starbucks executive, presuming the function of CEO. Alamo Drafthouse runs approximately 40 places and is headquartered in Austin, Texas.
The bankruptcy filing comes as part of a property purchase arrangement with Altamont Capital Partners, a previous investor in the business, 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 offer it the capital it requires to continue operating as it emerges from a public health crisis that left numerous of its locations closed for months.