Before COVID erupted, business was booming for Austin-based Alamo Drafthouse. But like other movie theater chains, Alamo Drafthouse was forced to close theaters amid lockdowns last year. And this week, those closures finally took a toll on the chain, which filed for Chapter 11 bankruptcy.

While the company cut expenses and implemented new safety measures, only a third of its 18 company-owned theaters and less than half of its 23 franchised locations have reopened in the meantime. In fact, it plans to close company-owned locations in Austin, Kansas City, MO and New Braunfels, while also pulling the curtain on a new location in Orlando.

“The company will continue to evaluate the health of all leases during the chapter 11 process and make determinations about additional lease terminations in deciding which locations will be part of the go-forward business,” Alamo said.