Even as some coronavirus-related business restrictions begin to lift, and New York movie theaters prepare to open for the first time in a year, the theater industry is not out of the woods. Today the Alamo Drafthouse, the popular chain of multiplexes with in-theater food and beverage, has filed for Chapter 11 bankruptcy.

The move, per Variety, is part of a plan to keep the theater chain going under new owners:

The bankruptcy filing comes as part of an asset purchase agreement with Altamont Capital Partners, a previous investor in the company, as well as affiliates of Fortress Investment Group, a new backer. The company says that operations will continue as normal and the Chapter 11 process and sale will give it the capital it needs to continue operating as it emerges from a public health crisis that left many of its locations closed for months. The agreement involves ‘the sale of substantially all its assets.’

Tim League, co-founder of Alamo and current executive chairman, will “remain involved with the company and is among the lender group buying the assets.” While the Drafthouse chain will continue, the bankruptcy will still have an impact, as Drafthouse does plan to close “a few” of its 40 locations around the country. That includes the company’s flagship location in downtown Austin, The Ritz.

The Drafthouse, which is based in Austin, Texas, is also in the news today because of their announcement that despite Governor Greg Abbott’s decision to end a mask mandate in the state and to lift all Covid restrictions on businesses they will continue enforcing their health policies for the foreseeable future. That includes a mandatory mask policy and social distancing. (The Alamo does allow patrons to eat and drink at their seats in auditoriums.) Their tweet of the company’s statement, which read “We are only following the guidance of the CDC and medical experts, not politicians,” quickly went viral.

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