Alamo Drafthouse, the Texas-based theater chain that’s popular for its in-theater dining and fan-forward approach to moviegoing, is exploring a sale.
Several Hollywood studios were approached to assess their interest in buying the company, according to two sources. It’s unclear if the talks are ongoing or how close the company is to a potential acquisition.
A representative for Alamo Drafthouse Cinemas declined to comment.
Alamo Drafthouse Cinemas filed forChapter 11 bankruptcyin 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. Alamo Drafthouse had to close down a few underperforming venues as part of its bankruptcy filing. Since pandemic lockdowns have lifted, the company has opened new locations in cities like Chicago, St. Louis and Washington D.C., currently maintaining about 40 venues in total.
As a whole, the domestic box office has yet to restore to its pre-pandemic glory. Last year’s strikes forced Hollywood to delay several blockbusters, so exhibitors are facing another shortage of big-screen releases. Ticket sales are 10% behind 2023, which isn’t great because that year was also a downturn from pre-COVID times. With studios pumping out fewer and fewer movies, analysts don’t expect the movie theater industry to fully recover until 2025, at the earliest.
Alamo Drafthouse is known for its extensive in-theater dining options, offering patrons a from-scratch food menu, local beers on draft and craft cocktails, all brought to seated guests by stealthy servers trained to not disrupt the movie experience. The cinema chain is also notable for its No Talking/No Texting policy, strictly enforced so patrons can watch films free from distractions.
Deadline first reported news of the potential sale.
