The 2020 Covid-19 pandemic devastated hundreds of businesses in the United States, forcing several establishments to file for bankruptcy, such as retailers, restaurants, real estate companies, and energy companies.
Most people remember the names of many restaurants that went bankrupt, including Chuck E. Cheese, Souplantation, Sweet Tomatoes, HomeTown Buffet, and Old Country Buffet. Several retail chains, such as JC Penney, Bed Bath & Beyond and a list of movie theater operators, have also filed Chapter 11.
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The pandemic caused the bankruptcy of cinemas
Movie theater operator CMX Cinemas filed for Chapter 11 bankruptcy in April 2020 after the Covid-19 pandemic devastated the industry.
Regal Cinemas owner Cineworld also struggled during and after the pandemic, as it closed more than 50 Regal theaters and filed for bankruptcy in September 2022. Cineworld, the second-largest theater operator behind AMC, emerged from bankruptcy on July 31, 2023.
The movie theater industry struggled to attract people to its physical properties after the Covid-19 pandemic, as moviegoers were reluctant to return to movie theaters after the health disaster. The decline in cinema attendance since the start of the pandemic has led more cinema operators to file for bankruptcy.
Iconic movie channel Society of Metropolitan Theaters has filed for Chapter 11 bankruptcy protection to reorganize its business affairs, which will include restructuring and possibly rejecting theater leases, company President David Corwin wrote in a bankruptcy filing.
The Los Angeles-based theater chain filed its Subchapter V bankruptcy petition on Feb. 29 in the U.S. Bankruptcy Court for the Central District of California in Los Angeles.
Some theater chains that filed for Chapter 11 protection due to the effects of the Covid-19 pandemic, however, have emerged from reorganization and are thriving in the industry.
The Alamo Drafthouse chain is looking to sell
The Alamo Drafthouse Cinema chain has bucked the trend of struggling multiplexes across the country as its recent success may have made it attractive for acquisition. The Austin, Texas-based company is seeking a buyer for its 41-theater chain, with 17 franchise locations, located in 13 states, Deadline reported.
News that the company was inquiring about a possible sale came from several anonymous Deadline sources, who also said that no asking price had been revealed and there were no bidders yet .
Alamo Drafthouse, founded in 1997, is estimated to have generated $134 million at the box office in 2023, an increase of more than 25% from 2022.
In March 2021, the dine-in theater chain filed for Chapter 11 bankruptcy due to the effects of the Covid-19 pandemic and emerged from bankruptcy in June 2021 after a sale to an investment group including Altamont Capital Partners, Fortress Investment Group and its founder. League Tim.
The cinema chain presents the latest film releases, foreign language films or cinema classics. Seats in theaters have tables in front of them for guests’ food and drinks to be delivered to their seats. Some theaters also have recliners.
Each location’s menu serves burgers, pizza, salads, snacks and desserts, and the bar features selections from local craft breweries, as well as innovative cocktails, according to the theater chain’s website.
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