Alamo Drafthouse Lake Highlands temporarily closed in October. Photo by Danny Fulgencio

Alamo Drafthouse Cinemas announced today that it has filed for bankruptcy, according to the AP.

The dine-in theater chain will enter a restructuring agreement due to financial impacts of the pandemic. The company plans to sell a majority of its assets to Altamont Capital and Fortress Investment Group affiliates under Chapter 11 bankruptcy, per the AP. This allows the Alamo Drafthouse to continue operating while managers and advisers repay creditors.

The Alamo Drafthouse will permanently close its downtown Austin theater along with theaters in New Braunfels and Kansas City, Missouri, as part of its restructuring.
In October, the company announced its Lake Highlands theater would close temporarily. Reports do not indicate that the neighborhood Alamo Drafthouse is set to permanently close.