Alamo Drafthouse to reopen five previously closed theaters after recent Sony investment

Weeks after being acquired by Sony Entertainment, Alamo Drafthouse has announced that it will be reopening five previously closed theaters in the Dallas-Fort Worth area. The theaters were closed last month after a franchisee — Two Is One, One is None LLC — that operated all the North Texas theaters filed for Chapter 7 bankruptcy and immediately closed the locations

"After the sudden closure of our Lake Highlands, Richardson, Cedars, Las Colinas, and Denton locations by their former franchise owner, we are thrilled to announce that we have officially purchased and plan to reopen all five of the DFW-area theaters!" the Austin-founded company said in a statement.

As for what the reopening plan will look like, Alamo Drafthouse has said it will be bringing back the theaters in rapid succession when each theater is ready. Additionally, the theater chain will be offering discounts and promotions, the details of which will be announced soon, during each theater’s grand reopening.

The handful of reopenings is the first public movement from the iconic Austin theater chain since it was acquired by Sony Pictures last month. Here's what you need to know about that deal, and if it means the motion picture palace is now in a growth mindset.

Sony alters entertainment industry with Alamo Drafthouse deal

In mid-June, Sony Pictures went from summer blockbuster movies to summer blockbuster deals when it announced it had acquired dine-in movie giant Alamo Drafthouse.

When the deal was made, Sony Pictures said in a statement that Alamo Drafthouse will be managed within Sony by a newly established division, Sony Pictures Experiences. The deal reinforces Sony’s long-held commitment to theatrical exhibition and gives the company new territory within the theater industry.

After the acquisition was announced, Sony made clear that Alamo Drafthouse CEO Michael Kustermann would remain in place leading the Lone Star dine-in movie theater chain. Kustermann will also head Sony Pictures Experiences.

The acquisition should not affect the theaters too much since Sony said that Alamo Drafthouse will continue to operate all 35 of its cinemas under the Alamo Drafthouse brand. Alamo Drafthouse-owned Fantastic Fest, the world-renowned genre film festival, is included in the acquisition and will also continue to be operated by Alamo Drafthouse. The company’s headquarters has remained in Austin since the deal was made.

Alamo Drafthouse could now be in full expansion mode

Since opening in downtown Austin in 1997, Alamo Drafthouse has grown into North America’s seventh-largest theater chain, releasing more movies per year than any other theater chain, welcoming more than 10 million guests annually, and building an audience of 4 million loyalty members. Last year, the theater chain saw a 30% jump in box office revenue from the previous year, which came in ahead of the industry at large.

“We are beyond thrilled to join forces with Sony Pictures Entertainment to expand our company vision to be the best damn cinema that has ever, or will ever, exist now in ways we could only ever dream of,” said Alamo co-founder Tim League.

“Alamo Drafthouse has always held the craft of filmmaking and the theatrical experience in high esteem, which are fundamental shared values between our companies. I’m jazzed that our company is doing this,” said Tom Rothman, chairman and CEO of Sony Pictures Entertainment Motion Picture Group.

As for the financial details of the deal, SPE acquired Alamo Drafthouse from owners Altamont Capital Partners, Fortress Investment Group and founder Tim League. Goldman Sachs & Co. LLC acted as exclusive financial advisor to Alamo Drafthouse in the transaction.

Beck Andrew Salgado covers trending topics in the Austin business ecosystem for the American-Statesman. To share additional tips or insights with Salgado, email Bsalgado@gannett.com.