Six Franchised Alamo Drafthouse Cinema Locations Close; File for Relief Under the U.S. Bankruptcy Code

Image Courtesy Alamo Drafthouse

After more than 13 years of operation, Two is One, One is None, LLC announced that the six franchised Alamo Drafthouse Cinemas it operates alongside its affiliates have filed voluntary petitions for relief under Chapter 7 of the U.S. Bankruptcy Code. The decision has resulted in the closing of five Alamo locations in North Texas—in Richardson, Las Colinas, Lake Highlands, Dallas, and Denton—and one in Woodbury, Minnesota. Before their closures, these five North Texas cinemas were the only Alamo Drafthouse locations in the Dallas metro area.

Two is One, One is None and its affiliates attribute the decision to seek bankruptcy protection and close the cinemas to various factors:

In a statement released to the press, Two is One, One is None and its affiliates attribute the decision to seek bankruptcy protection and close the cinemas to various factors, including a failure of attendance to return to pre-Covid levels; last year’s writers’ and actors’ strikes, delays from which have contributed to a lackluster box office across Q4 2023 and Q1 2024; and contractual obligations that required cinema operators “to keep even the most unprofitable locations open to the detriment of our overall business.”

The statement also argues that, “As a franchisee, we paid franchise fees”—reportedly totaling nearly 10 percent of their 2023 sales—”not required of other competitors,” a practice they identify as an unsustainable given the overall state of the industry. In an attempt to keep the doors open, Two is One, One is None and its affiliates state that the owners of the cinemas in question “infused more than $3.5 million dollars in new capital, into payroll and operations in 2023 and year-to-date 2024, while we attempted to reduce costs, including repeatedly seeking relief from our franchisor to reduce the non-competitive fee structure and to permit closure of the most non-profitable locations, neither of which were obtained.”

A spokesperson from Alamo Drafthouse responded:

“We are very disappointed to learn today that our franchisee, which operates five locations in Dallas-Fort Worth, TX and one in Woodbury, MN has filed for Chapter 7 bankruptcy and is closing their business effective immediately. We are heartbroken for the franchisee’s teammates and the local film communities, however, we are working as quickly as possible to get Alamo Drafthouse Cinema back up and running in these cities. All other Alamo Drafthouse locations are operating as normal, with continued expansion plans across the country.”

Alamo Drafthouse Cinemas—which operates both franchised and non-franchised locations—previously declared Chapter 11 bankruptcy in March of 2021 before emerging from bankruptcy in June of the same year.

Image Courtesy Alamo Drafthouse
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