DALLAS – The company operating the Alamo Drafthouse movie theaters in North Texas has declared bankruptcy, abruptly closing its six locations.
The closures will impact 600 employees at five locations in North Texas including Dallas, Richardson, Las Colinas, Lake Highlands and Denton, as well as a theater in Woodbury, Minnesota, near St. Paul.
According to a news release Thursday morning, the franchisee, Two is One, One is None, LLC, tried to reach all of the affected employees before the announcement and will offer references.
The news release attributed the bankruptcy to multiple financial factors, including high franchise fees, and being forced to keep operating its most unprofitable locations.
Other Alamo Drafthouse locations around the country were not affected by the bankruptcy, including in Austin, where the company is based.
Gift card holders, season pass holders and Victory members were urged to contact Alamo Drafthouse corporate.
A spokesperson for Alamo Drafthouse corporate provided the following statement:
“We are very disappointed to learn today that our franchisee, which operates five locations in Dallas-Fort Worth, TX and one in Woodbury, MN has filed for Chapter 7 bankruptcy and is closing their business effective immediately. We are heartbroken for the franchisee’s teammates and the local film communities, however, we are working as quickly as possible to get Alamo Drafthouse Cinema back up and running in these cities. All other Alamo Drafthouse locations are operating as normal, with continued expansion plans across the country.”
The movie theater business has struggled to recover from the COVID-19 pandemic. Box office sales over Memorial Day Weekend were 42% below 2019, according to data from Box Office Mojo.
