Alamo Drafthouse Cinemas files for bankruptcy, seeks buyer

AUSTIN, Texas (AP) — Alamo Drafthouse Cinemas Holdings, a Texas-based dine-in theater chain, says it filed for bankruptcy, citing financial woes during the pandemic.

The company plans to find a buyer during its Chapter 11 bankruptcy, which allows it to continue operating while its managers and advisers work on repaying creditors.

The Austin-based company says the sale will provide “much-needed incremental financing to stabilize the business during the pandemic.”

Alamo Drafthouse listed assets and liabilities of as much as $500 million each in its bankruptcy petition.

The Austin-based company has more than 40 theaters nationwide, including some in the Dallas-Fort Worth area and Kansas City, Missouri.