The movie-theater chain Alamo Drafthouse Cinema has filed for bankruptcy

Alamo Drafthouse Yonkers Kathy Tran final

The specialty theater chain Alamo Drafthouse Cinema has filed for Chapter 11 bankruptcy as the coronavirus pandemic continues to devastate the movie theater industry in the US.

The filing is part of a sale to the private equity firm Altamont Capital Partners, which had previously invested in the company, and affiliates of the investment management firm Fortress Investment Group.

The Texas-based company has more than 40 corporate-owned and franchise locations throughout the US, but will close some struggling locations as it reevaluates lease agreements. 

The company said that the filing and sale will give it the capital it needs to come out of the pandemic intact. The open locations will continue operations.

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