Phoenix-area Alamo Drafthouse movie theaters file for bankruptcy
PHOENIX – The franchisee of the Phoenix area’s three Alamo Drafthouse movie theaters has filed for Chapter 11 bankruptcy protection, citing the impact of closures mandated in response to the coronavirus pandemic.
“Our intention is to use this opportunity to reorganize our finances and plan for the road ahead,” Craig Paschich of Paschich Alamo Holdings LLC, which owns the Tempe, Chandler and Gilbert branches of the Texas-based theater chain.
“We’re also currently working closely with the corporate team in Austin to determine our next steps.”
The bankruptcy does not affect Alamo Drafthouse’s other locations across the U.S.
The company’s theaters are known for offering meal and bar service during its movie screenings.
Movie theaters were among the businesses required to remain closed throughout Arizona’s stay-at-home order, which expires Friday at 11:59 p.m.
They are permitted to reopen starting Saturday, but so far, theater companies have yet to announce dates for when they will resume operations.
The entire industry faces uncertainty because it relies on customers sitting in close proximity for hours, the kind of behavior that increases the risk of spreading COVID-19.
Still, Paschich hopes Alamo Drafthouse can serve Valley film fans again someday.
“We’ve been privileged to have spent the past four years sharing the films we love with our friends in the Phoenix region, and we hope that taking these steps will put us on track to open in the future,” he said.