I’ve never been to Alamo, though there is one here in Kansas City, I never get downtown. But thanks to COVID throughout 2020, I haven’t been to many theaters at all lately. Now it looks like there’s one more I won’t be able to go to, Alamo Drafthouse.
Alamo Drafthouse Cinema, the Texas-based theater chain that has become a favorite with cinephiles for its dine-in service and fan-forward approach to exhibition, has filed for Chapter 11. The bankruptcy filing comes as part of an asset purchase agreement with Altamont Capital Partners, a previous investor in the company, 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 give it the capital it needs to continue operating as it emerges from a public health crisis that left many of its locations closed for months. The agreement involves “the sale of substantially all its assets.”
What does that mean? It’s hard to say. The lender group buying the assets will probably close down a few of the underperforming locations for sure. Because our Kansas City location is one of them.
After closing temporarily to weather the storm that has been the COVID-19 pandemic, owners have made the decision to make the closure permanent.”
“Last March, we temporarily closed Mainstreet along with every other Alamo Drafthouse location. Nearly a year later, we’re incredibly sad to tell you that because of the ongoing impact of COVID, we will not be reopening Mainstreet,” officials said in a message on the Alamo Drafthouse website.
Well, take a lesson kiddos. Take advantage of what you have because you never know when it might go.
After this, who knows? The exhibition and conference business is in the toilet so for certain, there will be more of this coming in the future. We’ll see if Alamo is able to come out of this or not. With AMC’s future uncertain, smaller boutique chains are going to have a lot more trouble.