5 Alamo Drafthouse Locations in Dallas-Fort Worth Closing Immediately
How many Alamo Drafthouse Cinema locations are closing, and in which cities are these located?
Five Alamo Drafthouse Cinema locations are closing in the Dallas-Fort Worth area, specifically in Richardson, Las Colinas, Lake Highlands, Dallas, and Denton. Additionally, one location in Woodbury, Minnesota is also closing. These closures are due to the company in charge, Two is One, One is None LLC, filing for Chapter 7 bankruptcy protection.
What impact did the underperformance of blockbuster movies in May have on the overall movie industry's domestic gross revenue?
The underperformance of blockbuster movies in May had a significant impact on the overall movie industry's domestic gross revenue. May had a total domestic gross of $570 million, which was considered a slow start to the summer movie season. This slow start has put pressure on the industry, as June is not expected to perform much better. The lack of significant hits and the lower-than-anticipated earnings have contributed to the struggles the industry is facing in returning to pre-Covid sales levels. Additionally, the underperformance of certain films has led to a reduction in audience interest in moviegoing, further affecting the box office revenue.
What are the specific reasons cited by Two is One, One is None LLC for seeking Chapter 7 bankruptcy protection?
Two is One, One is None LLC, the company that franchised the six Alamo Drafthouse Cinemas, cited multiple reasons for seeking Chapter 7 bankruptcy protection. According to the statement provided by the company, Alamo guest counts never recovered to pre-COVID levels. The writers and actors strikes from last year also compounded issues. Furthermore, as a franchisee of Alamo, the company had to pay franchise fees that some competitors did not. This amounted to roughly 10 percent of the locations' sales, or $3.7 million, in 2023. The company also mentioned that contractual obligations with Alamo forced them to support the most unprofitable locations. Despite efforts to reduce costs and seek relief from Alamo, including infusing more than $3.5 million in payroll and operations, the company was ultimately unable to recover.