Former McDonald’s U.S. President and CEO Ed Rensi argues that many restaurants will not be able to survive in New York City with the reopening of indoor restaurants with 25% capacity.
Austin-based dinner and movie chain Alamo Drafthouse filed for bankruptcy, becoming one of the last companies facing financial difficulties during the pandemic.
The movie theater chain, known for its dining experiences, filed for Chapter 11 on Wednesday, predicting that a buyer could allow it to continue operating its more than 40 movie theaters in the United States while working to pay off debts.
Alamo Drafthouse announced on Wednesday that the company is filing for bankruptcy, Chapter 11. (Google Maps)
“The transaction will provide the company with the much needed incremental financing to stabilize business during the pandemic, which had an unprecedented and disproportionate impact on the movie and restaurant industries. More importantly, it will position Alamo Drafthouse to return to growth and continue to execute its long-term strategic vision, ”said the company in a statement obtained by FOX Business.
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The Chapter 11 order is part of a purchase agreement with Altamont Capital Partners, a former investor in Alamo Drafthouse and the Fortress Investment Group, the company said.
Alamo Drafthouse said the bankruptcy filing will also allow it to close nonprofit locations and restructure lease obligations to set it up for future growth.
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The company, meanwhile, says it has three new franchises scheduled to open this year, although its cinemas in Austin, Kansas City, Orlando and New Braunfels, Texas, are definitely closed.