Alamo Drafthouse, the movie theater chain that previously faded away during the pandemic to declare bankruptcy three years ago, has taken on a new lease of life after finding a new business owner.
Sony photos said On Wednesday, it purchased Alamo and will keep its 35 locations open. The theater, which will remain headquartered in Austin, Texas, will be merged into a new division called Sony Pictures Experiences. As part of the transaction, Sony also acquired Alamo's genre film festival Fantastic Fest.
Sony did not disclose the purchase price or other terms of the deal.
Sony Picture president Ravi Ahuja said the deal aligns with the company's mission to “engage entertainment fans outdoors in a fun and distinctive way,” adding that “Alamo Drafthouse's differentiated movie experience, admired brand and dedicated community fit this vision.”
Alamo is the nation's largest privately held theater chain, with locations in California, New York, Texas, Virginia and other states. According to Sony, the theaters attract more than 10 million customers annually.
Launched in Austin in 1997, Alamo differentiated itself from movie chains in the country by offering customers alcoholic beverages, seat-side food service and an atmosphere that quickly made a mark among theatergoers. The company's tagline: “The Alamo Drafthouse Theater is good food, good beer and good movies, all in the same place!”
“We were created by movie lovers, for movie lovers,” Alamo CEO Michael Kustermann, who will remain in his role, said in a statement. “We know how important this is to Sony, and it serves as further evidence of their commitment to the theatrical experience.”
Social distancing restrictions due to the pandemic, coupled with the delayed release of new films, have crippled the company's operations, Alamo said in its filing for bankruptcy in 2021. Alamo had 41 theaters before seeking protection from creditors, but the company six locations closed throughout North Texas.
Alamo was one of several movie theater chains that collapsed during the pandemic. The owner of Regal Cinemas, Cineworld, declared bankrupt in 2022. AMC Theaters risked no more cash last year until receiving a cash infusion of $917 million of investors.
Private equity firms Altamont Capital and Fortress Investment bought Alamo as part of the bankruptcy. The theater company emerged from Chapter 11 in March 2021.
—The Associated Press contributed to this report.
