Alamo Drafthouse is taking over the six franchise locations that closed in June due to bankruptcy.
The sites, including five Texas locations in the Dallas-Fort Worth area and one Minnesota location in Woodbury, are expected to reopen this summer.
“We were heartbroken to learn of the franchisee’s decision to close its Dallas-Fort Worth and Woodbury, Minnesota locations, but we immediately got to work acquiring them as Alamo Drafthouse-owned locations said Michael Kustermann, CEO of Alamo Drafthouse. “We are very excited to bring Alamo Drafthouse Cinema back to our teammates and local cinema communities in these great cities during an incredibly successful summer of cinema.”
Alamo Drafthouse Cinema said all affected location staff will be compensated for lost wages owed to them prior to the closures. Additionally, employees laid off as part of the franchisee’s closures will have first access to interviews for open positions. Those who are rehired will receive a more robust benefits plan with immediate eligibility, including access to a daily wage, a substantial 401k match, paid medical leave, accrued PTO and free mental health services, according to a press release.
The six locations were previously operated by Two Is One, One Is None, LLC. The company filed for Chapter 7, which it blames on the fallout from the pandemic and strikes. “Economic performance across the industry was down sharply in the fourth quarter of 2023 and the first quarter of 2024,” Two Is One, One Is None said at the time. “In fact, the first quarter of 2024 was the worst quarter in the history of the movie theater.”
With the purchased theaters, Alamo Drafthouse currently operates 41 locations nationwide, of which 15 are franchise locations and 26 are company-owned theaters. The company that owns Alamo filed for bankruptcy in early 2021, as theater chains struggled to recover from prolonged COVID-related shutdowns and a lack of new products. It emerged in June 2021 after completing a sale to Altamont Capital Partners, with funds managed by affiliates of Fortress Investment Group LLC and Alamo Drafthouse founder Tim League.
Earlier this month, after three years, Sony Pictures Entertainment acquired the cinema chain. The tour, a favorite among movie buffs, is known for its in-cinema dining options, themed events tied to new and beloved films, and its strict “no talking, no texting” policy.
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News Source : variety.com
