Alamo Drafthouse Cinema plans to reopen theaters in Texas and Minnesota that were closed by a franchisee after the dine-in movie theater chain got a new investment from Sony Pictures Entertainment.
The five movie theaters in the Dallas-Fort Worth region and one theater in Woodbury, Minnesota, will now be corporate-owned rather than being operated by a franchisee. The franchisee, called Two is One, One is None, filed for Chapter 7 bankruptcy protection after being unable to renegotiate franchise fees and contractual obligations to run a profitable business, Two is One, One is None said in early June.
The six theaters will now be owned and operated by Austin, Texas-based Alamo Drafthouse and are set to reopen in "rapid succession" this summer, the company said.
Alamo Drafthouse, which shows new releases and cinematic classics, said the 600 employees affected by the sudden closure of the theaters will be reimbursed for owed wages. Former Alamo Drafthouse employees will be offered first access to interviews for open positions at the corporate-owned locations, the company said.
"We immediately got to work to acquire these as Alamo Drafthouse owned locations," Alamo Drafthouse CEO Michael Kustermann said in a statement.
Alamo Drafthouse did not immediately disclose the exact reopening dates to CoStar News. The six theaters are:
- Alamo Drafthouse, Lake Highlands in Dallas.
- Alamo Drafthouse, Las Colinas at Toyota Music Factory in Irving, Texas.
- Alamo Drafthouse, Cedars in downtown Dallas.
- Alamo Drafthouse, Richardson, Texas.
- Alamo Drafthouse, Denton, Texas.
- Alamo Drafthouse, Woodbury, Minnesota.
Sony Pictures Entertainment bought Alamo Drafthouse in June as part of the studio's plans to expand into experiential entertainment. Alamo Drafthouse operates 41 cinemas throughout 25 metropolitan areas.
The Alamo Drafthouse-owned film festival Fantastic Fest was included in the acquisition and will continue to be operated by Alamo Drafthouse.
Alamo Drafthouse, North America’s seventh-largest movie theater chain, was founded by Tim and Karrie League in 1997. The first dine-in theater opened in Austin, where the movie chain's headquarters remain.