The first quarter of 2024 has been the worst-performing quarter in movie-going history
Film-goers were shocked and sad to learn all five Alamo Drafthouse Cinemas in North Texas have closed. The news was especially heartbreaking since the Angelika Film Center in Plano announced its closing just a few days ago. On a personal note, my husband and I have enjoyed watching classic favorites like Moulin Rouge and new releases at the Alamo Drafthouse in The Cedars area of Dallas. I especially loved the Alamo’s large, cushy, reclining seats and being able to order real food (not just popcorn) and beverages their attendants placed on my handy, built-in tray. These features helped elevate movie night into a special occasion at Alamo Drafthouse Cinemas.
The following statement was received from the Alamo Drafthouse Cinemas franchise operator for the five North Texas locations.
After more than 13 years of operation, Two is One, One is None, LLC announced today that the six franchised Alamo Drafthouse Cinemas operated by it and its affiliates have filed voluntary petitions for relief under Chapter 7 of the U.S. Bankruptcy Code and closed the five Alamo Drafthouse Cinemas in North Texas including the locations in Richardson, Las Colinas, Lake Highlands, Dallas, and Denton, and a location in Woodbury, Minnesota.
The Cinemas have provided guests with a unique movie-going experience with restaurant-in-theater servers, themed parties, menu items, and merchandise corresponding with movies, as well as offering holiday and other special movies.
Alamo Drafthouse Franchise Operator
Two is One, One is None, and its affiliates attribute the decision to seek bankruptcy protection and close the Cinemas to various factors:
Industry-wide guest counts have not rebounded even to pre-COVID levels. Coupled with the 100-plus days of the Writers’ and Actors’ strikes, industry-wide economic performance was severely down in the fourth quarter of 2023 and the first quarter of 2024. In fact, the first quarter of 2024 has been the worst-performing quarter in movie-going history.
As a franchisee, we paid franchise fees not required of other competitors; payment of these fees to our franchisor in a prolonged environment of significantly decreased revenues were not sustainable. Franchise Fees alone were nearly 10% of our sales ($3.7 million) in 2023.
Due to contractual obligations, we were forced to keep even the most unprofitable locations open, which harmed our overall business.
To offset operating losses and try to survive, our owners infused more than $3.5 million dollars in new capital into payroll and operations in 2023 and year-to-date 2024. We attempted to reduce costs, including repeatedly seeking relief from our franchisor to reduce the non-competitive fee structure and to permit the closure of the most non-profitable locations, neither of which were obtained.
Unique Movie-Going Experience
We are deeply saddened to find it necessary to take this step. We are grateful to all our employees who put in the work, day in and day out to produce a special movie-going experience. Also to our many loyal customers for whom it was a pleasure to provide such a special experience.
An attempt was made to contact all 600-plus employees prior to this press release and the closing of all theaters. We wish all employees well and much future success in their new endeavors. References will gladly be provided.
We suggest Season Pass and Victory Members and those guests with gift cards contact Alamo Drafthouse in Austin Drafthouse.com. Additional contact email addresses: Season Pass: seasonpass@drafthouse.com; and Victory Program: avp@drafthouse.com.
Updated info has been reported that the parent company may be able to reopen the DFW area locations sometime in the future, so we’re crossing our fingers.
