Alamo Drafthouse acquired by Sony Pictures
PREVIOUS COVERAGE: Alamo Drafthouse theaters in North Texas closed
The company that franchised the Alamo locations in North Texas abruptly announced that it is filing for Chapter 7 bankruptcy. As a result, the theaters in Richardson, Las Colinas, Lake Highlands, Dallas, and Denton and a location in Woodbury, Minnesota, will close.
Sony Pictures has acquired Austin-based movie theater chain Alamo Drafthouse.
The companies made the announcement on Wednesday.
Alamo Drafthouse has spread from a single screen in Austin in 1997 to having locations across the country.
"We are beyond thrilled to join forces with Sony Pictures Entertainment to expand our company vision to be the best damn cinema that has ever, or will ever, exist now in ways we could only ever dream of," said Alamo Drafthouse founder Tim League in a statement. "They have a deep respect and understanding of cinema’s ability to both drive growth and create lasting cultural impact which aligns perfectly with everything Alamo Drafthouse stands for."
Alamo, North America's 7th largest theater chain, will operate its locations under the Alamo Drafthouse name.
Recently, all five North Texas Alamo Drafthouse locations closed after the company that franchised the theaters, Two is One, One is None, LLC, filed for bankruptcy protection. The franchisor blamed struggling ticket sales and high franchise fees.
It is not clear how, if at all, the acquisition would affect the closed theaters.
Alamo said last week that the company was "working as quickly as possible to get Alamo Drafthouse Cinema back up and running in these cities."
Alamo Drafthouse itself filed for Chapter 11 bankruptcy and closed some locations in March 2021.
For Sony, the Drafthouse acquisition is plays a factor in its experiences initiatives, which includes events like Wheel of Fortune Live! Traveling tour.
Ravi Ahuja, the president and COO of Sony Pictures Entertainment also noted that the studio’s Crunchyroll films are particularly aligned with the interests of Drafthouse fans.
From 1948 to 2020, Hollywood studios were banned from owning movie theaters by the U.S. Department of Justice.
Sony will be the first major Hollywood studio to own theaters since the rules changes.
The Associated Press contributed to this story