AUSTIN (Austin Business Journal) — Last December marked an all-time low for Alamo Drafthouse Cinema LLC.
Revenue was essentially nonexistent as the COVID-19 pandemic rushed into another devastating surge. Despite the company’s best efforts, executives looked toward the new year and realized they wouldn’t have the funds to make payroll.
“We had done our absolute best to make the limited amount of money we had in the bank last,” said Alamo Drafthouse founder Tim League, now executive chairman of the company he started with wife Karrie League in 1997.
“What we had to do between December and March is we had to reduce our debt, negotiate with the bank, negotiate with landlords,” he added. “If we were able to hit this benchmark, then we would not go into bankruptcy. And we didn’t hit it.”
The result: a March Chapter 11 bankruptcy filing and a plan to sell “substantially all of its assets” to a lender group led by Altamont Capital Partners, Fortress Investment Group and Tim League.