Alamo Drafthouse Cinema chain files for bankruptcy, looks to sell
PHOENIX – Texas-based movie chain Alamo Drafthouse Cinema has followed the Phoenix-area theaters in filing for bankruptcy, citing the coronavirus pandemic for its financial trouble.
The dine-in theater group announced the decision Wednesday and added operations will go on while it tries to attract a buyer.
Paschich Alamo Holdings LLC, owner of the Valley theaters in Chandler, Gilbert and Tempe, had filed for Chapter 11 bankruptcy protection in May 2020, just as Arizona’s stay-at-home order expired.
The local theaters reopened at the end of August 2020 with coronavirus protocols in place.
“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,” a Texas representative for the company said in a statement.
“More importantly, it will position Alamo Drafthouse to return to growth and continue executing on its long-term strategic vision.”
Founded in Austin, the business has more than 40 theaters nationwide. The chain is known for serving meals and bar drinks to moviegoers during screenings.
The Associated Press contributed to this report.