Operations will continue as normal, however. Alamo said the deal will provide “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 purchasers include Alamo founder Tim League, some of the company’s original investors and two financial firms.
Alamo is permanently closing three locations, including a theater in its hometown of Austin, as well as outposts in Kansas City, Missouri, and New Braunfels, Texas. Development of an Orlando, Florida, location will also be “permanently ceased.”
Additional locations might also close as the company evaluates the “health of all leases” during the Chapter 11 filing.
But League said in a press release that he’s optimistic for Alamo’s future.
“Because of the increase in vaccination availability, a very exciting slate of new releases and pent-up audience demand, we’re extremely confident that by the end of 2021, the cinema industry — and our theaters specifically — will be thriving,” he said.
Two major cities are soon reopening its theaters, too. New York City locations can reopen at a limited capacity Friday and Los Angeles is also close to reopening as infection rates decline.
