RALEIGH, N.C. (WTVD) -- The COVID-19 pandemic is taking a toll on theaters and the Alamo Drafthouse Cinema is no exception.
The Austin-based dine-in cinema chain filed for Chapter 11 bankruptcy on Wednesday closing three of its locations nationwide.
Through the filing, the company will sell its assets to a group of investors, including Altamont Capital Partners, Fortress Investment Group and Tim League, Alamo Drafthouse founder and executive chairman, among others.
"The transaction will provide the company with much-needed incremental financing to stabilize the business during the pandemic, which has had an unprecedented and out-sized impact upon the movie theater and dining industries," the company said in a statement obtained by the News & Observer.
So far, the company announced it will close its location in Austin and New Braunfels, Texas as well as a Kansas City location.
As for the retro-themed New Bern Avenue location in Raleigh, its fate remains up in the air.
Since the COVID-19 pandemic, the Alamo Drafthouse has closely followed state guidelines in accordance with Governor Cooper's executive orders. The movie chain has a mandatory mask policy and encourages 6-feet social distancing.
Alamo Drafthouse files for bankruptcy as pandemic trudges on; Raleigh location remains open -- for now
More TOP STORIES News