Yahoo Finance Alamo Drafthouse Takes Over Bankrupt Franchisee Theaters in Texas and Minnesota
Alamo Drafthouse is taking over the six franchisee locations that closed in June due to bankruptcy.
The venues, including five Texas locations in the Dallas-Fort Worth area, as well as a Minnesota venue in Woodbury, are set to reopen this summer.
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“We were heartbroken to hear about the franchisee’s decision to close their locations in Dallas-Fort Worth and Woodbury, MN, but we immediately got to work to acquire these as Alamo Drafthouse-owned locations,” said Alamo Drafthouse CEO Michael Kustermann. “We’re so excited to reestablish Alamo Drafthouse Cinema for our teammates and local film communities in these great cities during an incredibly successful summer of moviegoing.”
Alamo Drafthouse Cinema said all affected venue staff will be made whole for lost wages that they were owed prior to the closures. Also, employees who were let go as part of the franchisee’s closings will get first access to interviews for open positions. Those who are rehired will receive a more robust benefits plan with immediate eligibility, including access to daily pay, substantial 401k match, paid medical leave, accrued PTO and free mental health services, according to a press release.
All six locations were previously operated by Two Is One, One Is None, LLC. The company filed for Chapter 7, which it attributed to fallout from the pandemic and the strikes. “Industry-wide economic performance was severely down in the fourth quarter of 2023 and in the first quarter of 2024,” Two Is One, One Is None said at the time. “In fact, the first quarter of 2024 has been the worst performing quarter in movie-going history.”
With the repurchased theaters, Alamo Drafthouse currently maintains 41 locations nationwide — 15 of which are franchise locations and 26 are corporate-owned theaters. Alamo’s corporate ownership filed for Chapter 11 bankruptcy in early 2021 as theater chains were struggling to rebound from prolonged COVID-related closures and a lack of new product. It emerged in June of 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.
Three years later, Sony Pictures Entertainment acquired the theater chain. The circuit, a favorite among cinephiles, is known for in-theater dining options, themed events tied to new and beloved movies, as well as its strict “no talking, no texting” policy.
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