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Alamo Drafthouse declares bankruptcy, new financial backer owns Austin American-Statesman
(Never Settle Media/Shutterstock)
Alamo Drafthouse in S. Austin offers private, sanitized screenings

Beloved movie chain Alamo Drafthouse Cinema has filed for bankruptcy after a tough year for the film industry left theaters closed for months.

The filing comes as part of an asset purchase agreement with Altamon Capitol Partners and Fortress Investment Group, which is the financial backer of Gannett, the parent company of the Austin-American Statesman.

The transaction is expected to provide Alamo Drafthouse with much-needed financing to help stabilize the business during the pandemic, which has had a large impact on the movie industry. The locally-headquartered theater has said that operations will remain normal, but some locations are closing down including Austin's downtown Ritz location.

Alamo Drafthouse, founded in 1997 in Austin, has over 40 locations nationwide and like most indoor movie theaters, has faced challenges since the pandemic. Over the last year, the business has seen temporary closures across the nation, debt, expenses and employee layoffs.

Alamo Drafthouse is requesting the bankruptcy court to approve a 75-day timeline for the transaction as well as the $20 million debtor-in-possession credit facility led by Altamont Capital Partners and Fortress Investment Group.

Although the company has faced challenges following its most successful year in 2019, the movie business, like most others, is expected to rebound with the transition of more administered vaccines and a slower spread of COVID-19.

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