Alamo Drafthouse Ritz has faced difficulties since last spring's outbreak of COVID-19. | Company Photo
Alamo Drafthouse Ritz has faced difficulties since last spring's outbreak of COVID-19. | Company Photo
Another Austin business has shuttered as a result of the economic impact of the COVID-19 pandemic with the Alamo Drafthouse cinema declaring Chapter 11 bankruptcy.
The Austin American-Statesman reported that the company Alamo Drafthouse Ritz theater in downtown Austin, along with other locations in New Braunfels and Kansas City, Missouri, will be permanently closed. All other theaters will continue to operate in accordance with pandemic guidelines.
Alamo has entered into a purchase agreement for the sale of its assets to a senior lender group.
"The transaction will provide the company with much-needed incremental financing to stabilize the business during the pandemic, which has had an unprecedented and outsized impact upon the movie theater and dining industries," the company said in a written statement. “More important, it will position Alamo Drafthouse to return to growth and continue executing on its long-term strategic vision."
More locations could close as well as the company reviews all of its leases to determine which locations to let go during the bankruptcy process.
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