For Alamo Drafthouse, that means Chapter 11 bankruptcy reorganization, closing three locations, and selling out to a private-equity investment group, with Alamo founder Tim League retaining a minority stake.
For Cinemark, it means turning away the opportunity to play Disney’s animated “Raya and the Last Dragon” March 5.
Nearly a year after domestic theaters closed in response to the growing Covid-19 threat, exhibitors face another reckoning: Now What? Their core business of showing movies for profit remains the same, but each theater or chain must also confront its own sets of strengths and weaknesses in order to move forward. That process places them on many different paths.
The Drafthouse reorganization, announced March 4, will allow its 37 owned-and-operated locations (as opposed to their franchises) to operate in the short term, increase their ability to negotiate with landlords, and potentially regroup.