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Alamo Drafthouse Files for Bankruptcy
- chasing 6y agoThe world at large and Austin in particular are going to take a huge cultural hit because of our failure to deal with COVID-19 properly. NFTs aren't going to solve the fact that people who create art and culture are so vital to our civilization and yet for the most part live on the edge of financial stability. Sad.
- needz 6y agoNon-fungible tokens??
- dublin 6y agoThe way to deal with Covid-19 "properly" was simply to do nothing at all and let the virus run its course, like the flu or any other communicable disease. This has been a disaster for all concerned, and the lockdowns have killed far, far, more people than would have been killed by the Wuhan virus just being allowed to run amok...
- pstuart 6y agoOr perhaps we followed the original plan and had masks, tests, and tracking in place like the previous administrations had done. The fact that masks are politicized at all shows how badly it was managed.
- kelnos 6y agoAh yes, the "let the hospitals get overwhelmed" plan. Far more people would have died that way. The US's response was absolutely abysmal, I agree, but your plan would have been much, much worse.
- alextheparrot 6y agoDamn, hopefully the SF location doesn’t change too much in response to this. There and the New Parkway in Oakland are the only theaters I really go to.
- sdenton4 6y ago(+1 for the New Parkway. They've also been doing pretty great 'food crates' to make ends meet while they aren't playing movies...)
- alextheparrot 6y agoThanks for letting me know, ordered a crate for pickup next week (Seems that they are doing well selling them in general)!
- bsimpson 6y agoI still haven't made it to the New Parkway. Thanks for the nudge.
- corysama 6y agoAgreed. The Alamo in the SF Mission has completely spoiled me and my SO. We are not interested in going out to other theaters but love going specifically to that one.
- jdhawk 6y agoThis is mostly a restructuring to shed some debt before a big capital infusion. Alamo's business model in a post-pandemic world is still a huge money maker.
- dublin 6y agoYou're assuming the myriad petty government tyrants will give up the control over our lives that they've seized. Let me know how that works out for you - history shows that never happens without violence.
- CarelessExpert 6y agohttps://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html > Please don't use Hacker News for political or ideological battle. It tramples curiosity. > Eschew flamebait. Don't introduce flamewar topics unless you have something genuinely new to say. Avoid unrelated controversies and generic tangents.
- majormajor 6y agoIt's happened in the US in the past after previous crisis. I don't understand the line of thinking that goes that the government WANTS to destroy businesses and economic activity and reduce their own tax base, income, and ability to operate...
- fredophile 6y agoI think there are good reasons to be skeptical. The USA PATRIOT act was rushed through congress in a previous crisis and it took nearly 20 years before it stopped being reauthorized.
- causalmodels 6y agoI think your comparison misses the fact that COVID measures are largely decentralized because they require the agreement and participation of everyday people to be effective whereas the PATRIOT act centralized authority and control. As a result, the COVID measures basically lack enforcement mechanisms that could continue to exists after the pandemic ends.
- imaginationra 6y agoOur studio was looking to four wall our new film using their locations later this year to do our US screening tour. I hope most of them survive as without proper theatrical venues, appreciation for Cinema in the U.S. will wane.
- donarb 6y agoJust in case someone else is not familiar with the term "four walling". https://en.wikipedia.org/wiki/Four_wall_distribution https://en.wikipedia.org/wiki/Four_wall_distribution
- DIVx0 6y agoThis makes me sad. I _really_ enjoy the drafthouse and I rarely see movies anywhere else because all other major theater chains prioritize squeezing dollars vs the experience. I see that the founder(s) are still involved but I can't help think that it'll just be a slow decline until the drafthouse is indistinguishable from AMC or other chains and their infinite commercial pre-rolls and dirty theaters. I hope I am proven wrong OR another theater that respects the art springs up to fill the potential void.
- kelnos 6y agoDon't worry; this is just Chapter 11. It gives Alamo time to restructure their debts, and likely is a prelude to a big cash infusion from somewhere. They're a fantastic, profitable business in normal times; tearing the company apart and selling it for scrap would not be in anyone's best interests. On the downside, as the article mentions, some of their lower-performing locations will likely close.
- bmitc 6y agoI generally feel that the Alamo Drafthouse experience is actually pretty terrible for movies other than big action or comedy blockbusters. I don't see how a place that serves popcorn in a giant metal bowl takes quietness seriously. And although they advertise it, they really don't police talking or distractions anymore or even equivalently as other theaters.
- simonebrunozzi 6y ago> Our European visitors are important to us. > This site is currently unavailable to visitors from the European Economic Area while we work to ensure your data is protected in accordance with applicable EU laws.
- mikeryan 6y agoAlamo is a movie theater chain based mostly in the US South and CA that is known for adding food, bars, distributing both major studio and indie movies and really enhancing the "in-theater" experience. They're a very exposed casualty to Covid unfortunately. While I'm sure European visitors are "important" it's mostly a US Brick and Mortar business so it's not that "important" to meet GDPR requirements apparently.
- phillc73 6y agoRight. I don't even know what is a Drafthouse? And now I may never know.
- ch4s3 6y agoAlamo Drafthouse is a fancy theater that has limited seating, a VERY strict cell phone/talking policy, craft beer, and pretty good food.
- pseudolus 6y agoThe cell phone policy is a point of pride: https://www.youtube.com/watch/1L3eeC2lJZs https://www.youtube.com/watch/1L3eeC2lJZs
- alistairSH 6y agocraft beer, and pretty good food. They do? Looks like typical mediocre American pub fare... https://s3.drafthouse.com/menus/NOVA_DigitalMenu_JAN21_9x12.pdf https://s3.drafthouse.com/menus/NOVA_DigitalMenu_JAN21_9x12....
- 6y ago
- drfuchs 6y agoImportant to note that it's a "Chapter 11" bankruptcy, which loosely translates to "Our creditors and shareholders will take a big loss, but we'll keep operating and hopefully our customers won't notice a thing." As opposed to "Chapter 7", which means "we're shutting down and doing a fire sale of all our stuff so creditors can get a few cents on the dollar." For instance, Hertz is going through Chapter 11, but you'd never know as a customer.
- bpodgursky 6y agoIt's a huge difference. IMO Chapter 11 bankruptcy is one of the greatest strengths of the American legal system.
- parhamn 6y agoWhat are the quick pro/cons here? Assuming creditors take the loss (they assumed the risk), debtor loses the debt and what else? Do the debtors lose much besides their creditworthiness? The main con I assume is the moral hazard?
- shiftpgdn 6y agoChapter 11 generally involves a payment plan to debtors.
- mikeryan 6y agoChapter 7 means liquidating all assets - business gone, creditors can pick over the pieces to try to recoup something. Chapter 11 business is functioning and tries to restructure debts in a way to pay creditors back, maybe not wholly back but at least partly or with an extended time window. It provides a shield from creditors while doing this. For someone like Alamo so adversely affected by Covid but with an otherwise (AFIACT) healthy business in non-covid times its a reasonable approach to try to get out from under-water without undue pressure from creditors. You see Chapter 11 more around extraordinary operating circumstances, recesssions etc. Where businesses think they can get back on their feet given some time.
- blintz 6y agoNothing better than sipping beer and munching truffle popcorn at the Alamo Drafthouse at the SF location in the Mission. It really makes other theaters look like highway robbery; for the same money you get a dramatically better experience.
- MeinBlutIstBlau 6y agoI honestly miss even moronic banter in theaters. It heightens the experience imo.
- silicon2401 6y agoI wish theaters would have strict talking-allowed and talking-banned rooms if they survive the pandemic. People talking during movies is single-handedly enough of a reason for me to stop going to a movie theater
- thelean12 6y agoFWIW Alamo is really strict against talking. I've never had an issue, and they have staff walking around enforcing (they're already walking around for orders anyway).
- technofiend 6y agoNot only are they very strict, but they have a lot of fun with it. See an angry voice mail from one customer https://www.youtube.com/watch?v=1L3eeC2lJZs https://www.youtube.com/watch?v=1L3eeC2lJZs, or the playlist with a long list of PSAs, many of which include celebrities, asking you to please not talk: https://www.youtube.com/playlist?list=PLpX5OvrhWl9I59CYEx_ZtXnSmpBQEDbWe https://www.youtube.com/playlist?list=PLpX5OvrhWl9I59CYEx_Zt... Props to anyone who can get Neil Gaiman to make a please no talking PSA in the form of an Agnes Nutter prophecy.
- criddell 6y agoI'm in Austin and it's been years since I've seen anybody get warned for talking or having their phone light up. Even if people weren't talking to each other, there's a lot of low volume conversations happening with the waiters and people use their phone to illuminate menus and to see what they are eating.
- Afforess 6y agoRIP Alamo Ritz: As part of this bankruptcy, Alamo Drafthouse will close down underperforming locations, including the flagship Alamo Drafthouse Ritz location in downtown Austin on Sixth Street. I've been there for a lot of special Alamo shows, including Master Pancake shows. It will be sorely missed.
- uncletammy 6y agoIt had a great run. The silver lining is that there's now absolutely no reason one ever has to go to sixth street!
- csours 6y agoAlamo Drafthouse is home to some of my favorite memories - from live riffs by Master Pancake (with a wide array of guest stars including Mary Jo Pehl, the Mads - Frank Conniff and Trace Beaulieu, Doug Benson, Sam "Jerry" Jones [Flash, AhAAAH], and many others) to Fantastic Fest to Sing Alongs to Movie Parties to Classic and Genre Movies. I know they'll survive in some form, but this is tough, y'all.
- RhysU 6y agoA "Super Troopers" Mister Sinus Theater presentation featuring a syrup drinking contest is burned in my mind. Three audience volunteers selected before anyone was told for what they were volunteering. The hosts handed out bottles of syrup and said "Go!" One contestant gets nowhere. One downs it instantly because his bottle had iced tea in it. The hosts lose it because the third contestant got halfway through a real bottle of syrup motivated by the performance of the iced tea drinker. The hosts thought it would be a good show (it was) but never anticipated someone seriously trying. Audience howls. All contestants given prizes. This was over 10 years ago and I can still picture it despite having a crap visual memory. I hope Alamo can pick up the pieces.
- mauvehaus 6y agoThe collected action scenes in Enthiran made the rounds of the internet during the four months I was living in Austin. And so naturally they got a print and screened it. Gotta love the kind of brilliance behind that move. Where else would you ever have the chance to see it on the big screen? https://m.youtube.com/watch?v=rDHnJvboy0c https://m.youtube.com/watch?v=rDHnJvboy0c
- smoldesu 6y agoUgh, the Mads are calling again. Crow, can you get that?
- smcnally 6y agoI hope Alamo asks their fans to pitch-in as they can so Drafthouse survives and thrives. Saying this so solely as a loyal customer: I bought a bunch of tees[0] and hoodies[1] as holiday gifts through their Mondo store. They look great and are super high-quality. I have 0 affiliation, but a vested interest in having them back online sooner than later. Between Drafthouses in Yonkers (NY) and DTLA, I've seen Live Programs with Crispin Glover, Penn Jillette, and makers I hadn't known previously. I've been to moderated screenings with audiences half-full of first-timers seeing Blazing Saddles, A Day at the Races, Spirited Away (subs v dubs), and me as the first-timer seeing Casablanca front-to-back on the big screen. Their pre-show reels are crafted with skill and care and with clever relevance to their feature films from multiple angles. The org is run by folks who clearly love movies and create experiences for others who do too. They seem like they would be ethical in their handling of vendor relations through Chapter 11, though that's always TBD. 'Alamo Victory' is a good program w/r/t heds-up re event schedule, ticket-less admittance & card-less settle-ups, and reasonable perks for going to pictures. Victory's newsletter and mobile apps are a good place to start letting fans know how we can help. [0] https://mondoshop.com/collections/apparel/products/alamo-drafthouse-logo-pride-edition-t-shirt https://mondoshop.com/collections/apparel/products/alamo-dra... [1] https://s3.birthmoviesdeath.com/images/made/BMD_HOODIE_FLAT_1200_1521_81_s.jpg https://s3.birthmoviesdeath.com/images/made/BMD_HOODIE_FLAT_...
- IndySun 6y agoGlad to hear they're not planning on disappearing. Spent many hours in Austin TX Alamo's during the SXSW festivals. A wonderful experience. A little like the UKs Everyman chain (but with stunningly entertaining kookie ads running).
- smrtinsert 6y agoI will personally contribute money to them if I have to. One of my favorite businesses.
- flabbergasted 6y agoIf you haven't already, consider buying gift cards.
- chrisseaton 6y agoBuy a gift card from a bankrupt business? Isn't that just a donation to their creditors at this point?
- flabbergasted 6y agoThey are not going out of business.
- purple_ferret 6y ago>As part of this bankruptcy, Alamo Drafthouse will close down underperforming locations, including the flagship Alamo Drafthouse Ritz location in downtown Austin on Sixth Street. Alamo getting priced out of Austin? Thanks Joe Rogan!
- gizmo385 6y agoAs someone who doesn't follow Joe Rogan, what is his involvement here?
- purple_ferret 6y agoNothing direct to Alamo, but he's moved to Austin and is trying to convince all his rich LA friends to move there so they can essentially take it over and run their own scene.
- deleted 6y ago[deleted]
- technofiend 6y agoDespite the 20+ mile drive I prefer Alamo to any other theatre in no small part due to their - depending on your view - strict but reasonable or utterly draconian [1] no using your phone rules. Having said that, when they got aggressive about expanding they shrunk their menu and removed local variations of both food and beer. Frankly, Alamo without a Honey I Shrimped The Pigs just ain't the same Alamo. I'd like them to let local managers add back a bit of flavor, maybe do pop ups in conjunction with local restaurants [2] and otherwise improve their food and drink offerings back to the quality they were when the chain started. Prior to the pandemic I still went to Alamo for my movies, but I ate beforehand. [1] https://www.youtube.com/watch?v=1L3eeC2lJZs https://www.youtube.com/watch?v=1L3eeC2lJZs [2] https://www.houstoniamag.com/eat-and-drink/southern-smoke-is-saving-the-food-industry-during-pandemic https://www.houstoniamag.com/eat-and-drink/southern-smoke-is... Chris Shepherd's Southern Smoke Foundation is doing pop ups in conjunction with other businesses and donating the profits to help food service workers impacted by the pandemic; both financial aid and mental health care. Laudable and his food is good.
- StillBored 6y agoThe original couple locations had _good_ food. AKA food good enough to go there just for the food instead of some local joint. Somewhere along the way I think they must have cysco'ed their food, because the last couple times I went there the food was definitively subpar. This seems to be an unavoidable side effect of trying to scale like this, but I guess its just something you have to suck it up and move on (there is a up market drafthouse clone near my house, although their food was also on a decline pre Cov19.).
- technofiend 6y agoTheir CEO came out at the time and tried to defend the decision, saying it was necessary to help them expand. But it was obviously one of those grad school exercises on how much you could lower quality and still sell at the old price gone terribly, terribly wrong. Someone told themselves they'd make it up in volume but they were mistaken. It's unfortunate because surely Alamo like any other theatre makes far more in concession sales than ticket sales. Their CEO needs to completely rethink his strategy and return Alamo to its roots, or more likely get booted in favor of someone who will.
- cletus 6y agoNote that often equity holders are the biggest losers in a Chapter 11. Secured creditors and bond holders may well end up owning the company.
- breatheoften 6y agoI wonder how much Chapter 11 actually makes sense as a response to something like Covid versus a swift and merciless Chapter 7 and then rebooting the business once theaters are viable again. Assuming that a Chapter 7+then+future_reboot was possible -- who benefits the most from allowing the company to attempt to limp along until the pandemic ends intact? Are there a significant percentage of company employees who are currently getting paid with benefits during the pandemic -- or is this mainly about making it seem as likely as possible that the business will come back so that the current set of non-compensated employees will try to limp along on their own without pay in such as way that they will come back after the pandemic is over?