**Alamo Drafthouse to Reopen 6 Closed Theaters After Sony Acquisition**
In a significant development for moviegoers and cinema enthusiasts, Alamo Drafthouse is set to reopen six of its previously closed theaters. This move comes after the franchise company responsible for these locations declared bankruptcy, leading to their abrupt closure. The theaters, which include one in Minnesota and five in the Dallas-Fort Worth area, will now operate under the main Alamo Drafthouse brand.
The closures occurred at the beginning of June when the franchisee, Two Is One, One Is None, LLC, filed for Chapter 7 bankruptcy. This unfortunate event resulted in the loss of jobs for 600 employees. However, Alamo Drafthouse has stepped in to buy back these locations and plans to reopen them swiftly.
The reopening of these theaters is closely tied to a landmark acquisition by Sony Pictures Entertainment. Sony’s purchase of Alamo Drafthouse has provided the financial flexibility needed to reclaim and revive the shuttered theaters. This acquisition marks a significant shift in the industry, with a major film studio now directly owning a prominent theater chain in the United States.
Alamo Drafthouse CEO Michael Kustermann expressed his enthusiasm for the reopening, stating, “We were heartbroken to hear about the franchisee’s decision to close their locations in Dallas-Fort Worth and Woodbury, MN, but we immediately got to work to acquire these as Alamo Drafthouse-owned locations. We’re so excited to reestablish Alamo Drafthouse Cinema for our teammates and local film communities in these great cities during an incredibly successful summer of moviegoing.”
In a bid to support the affected employees, Alamo Drafthouse will offer those who lost their jobs the first opportunity to interview for open positions. Rehired employees will benefit from an enhanced benefits plan, which includes immediate eligibility for daily pay, substantial 401k match, paid medical leave, accrued PTO, and free mental health services.
To celebrate the reopening, Alamo Drafthouse will host soft openings during the first week of each location’s return. These events will feature promotions and discounts, details of which will be announced soon. Additionally, patrons who had pre-purchased tickets for movies that were missed due to the closures will receive free ticket vouchers. Those who had bought merchandise, such as the “Deadpool & Wolverine” pint glass or the “Inside Out 2” lunchbox, will receive their items upon reopening.
The acquisition of Alamo Drafthouse by Sony Pictures Entertainment has sent shockwaves through the industry. While theater ownership by studios has been done on a small scale before, Sony’s move represents a more significant investment. The company has established a new division, Sony Pictures Experiences, to manage Alamo Drafthouse. This division will continue to operate the theaters as they always have, including exhibiting non-Sony releases.
Ravi Ahuja, President and COO of Sony Pictures, emphasized the alignment between Alamo Drafthouse’s unique movie-going experience and Sony’s vision. “We believe strongly in engaging entertainment fans outside the home in fun and distinctive ways. Alamo Drafthouse’s differentiated movie-going experience, admired brand, and devoted community fit well with this vision. Our Crunchyroll business also aligns well with their audience’s interests. We look forward to building upon the innovations that have made Alamo Drafthouse successful and will, of course, continue to welcome content from all studios and distributors.”
Michael Kustermann echoed this sentiment, stating, “We are excited to make history with Sony Pictures Entertainment and have found the right home and partner for Alamo Drafthouse Cinema. We were created by film lovers for film lovers. We know how important this is to Sony, and it serves as further evidence of their commitment to the theatrical experience. Together we will continue to innovate and bring exciting new opportunities for our teammates and moviegoers alike.”
The acquisition comes after a turbulent period for Alamo Drafthouse, which faced significant challenges due to the COVID-19 pandemic. In March 2021, the company filed for bankruptcy and was subsequently purchased by Altamont Capital Partners and Fortress Investment Group. Sony’s acquisition of the chain, alongside its founder Tim League, marks a new chapter for Alamo Drafthouse.
In recent years, other streaming studios have also ventured into theater ownership. Amazon Studios operates the Culver Theater in Culver City, while Netflix has acquired the Paris Theater in New York and the Egyptian Theater in Hollywood. However, Sony’s acquisition of Alamo Drafthouse represents a more substantial investment in a dine-in theater chain with a loyal following of 4 million members.
Tom Rothman, Chairman and CEO of Sony Picture Group, highlighted the shared values between Sony and Alamo Drafthouse. “Alamo Drafthouse has always held the craft of filmmaking and the theatrical experience in high esteem, which are fundamental shared values between our companies. I’m jazzed that our company is doing this.”
Tim League, founder of Alamo Drafthouse, expressed his excitement about the partnership with Sony. “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. 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.”
Goldman Sachs & Co. LLC acted as the exclusive financial advisor to Alamo Drafthouse in the transaction.
As the theaters prepare to reopen, Alamo Drafthouse is committed to making affected staff “whole for lost wages” and offering former franchise employees the first opportunity for interviews. Customers will also benefit from promotions, discounts, and free ticket vouchers for missed screenings. Season Pass holders will receive a free month of service if they choose to reactivate their subscriptions.
The reopening of these theaters marks a new beginning for Alamo Drafthouse under Sony’s ownership, promising an exciting future for both employees and moviegoers.
Source: TheWrap, IndieWire, WFAA
