The Covid-19 pandemic left a trail of destruction that led to several types of businesses, such as retailers, restaurants and real estate companies, filing bankruptcy and in some cases closing down their operations.
Retailers filing bankruptcy included Bed Bath & Beyond and Tuesday Morning, which both shut down their brick and mortar operations.
Related: Popular Mexican restaurant chain files for Chapter 11 bankruptcy
The list of bankrupt restaurants included Chuck E. Cheese, HomeTown Buffet, Old Town Buffet and Souplantation. Mall REITs Pennsylvania Real Estate Investment Trust, CBL Properties (CBL) and Washington Prime WPG filed Chapter 11 after suffering from effects of the pandemic.
Covid also had a devastating effect on movie theaters as many patrons feared the risk of a Covid infection from sitting close to others in a theater audience. Despite the Covid pandemic subsiding over the past couple of years, crowds of movie-goers still have not returned in full force to indoor movie theaters since the beginning of the pandemic.
The sparse crowds at movie theaters have led to financial distress for owners of theaters from the smallest single screens to large multiplexes.
CMX Cinemas, which currently operates 29 theaters nationwide, filed for Chapter 11 protection in April 2020 at the beginning of the Covid pandemic when almost every theater was shuttered to prevent the spread of the disease.
Regal Cinemas owner Cineworld also faced economic hardship during the pandemic and afterward, as the British-based company closed over 50 Regal theaters and filed bankruptcy in September 2022. Cineworld, the second largest theater operator behind AMC, emerged from bankruptcy July 31, 2023.
Related: Struggling housing brand files Chapter 7 bankruptcy, will liquidate
Historic movie theater chain Metropolitan Theatres Corp. filed for Chapter 11 bankruptcy protection to reorganize its business. The Los Angeles-based movie theater chain on Feb. 29, 2024, filed its Subchapter V bankruptcy petition in the U.S. Bankruptcy Court for the Central District of California in Los Angeles.
Alamo Drafthouse recovered after bankruptcy filing
Dine-in movie theater chain Alamo Drafthouse, founded in 1997, in March 2021 filed for Chapter 11 bankruptcy protection suffering from the effects of the Covid-19 pandemic and emerged from bankruptcy in June 2021 after a sale to an investment group that included Altamont Capital Partners, Fortress Investment Group and founder Tim League.
More bankruptcy:
- Struggling digital brand forced into Chapter 11 bankruptcy
- Popular fast-casual Mexican chain closing dozens of restaurants
- Struggling energy company files for Chapter 11 bankruptcy
The theater chain presents the latest motion picture releases, foreign language films or cinematic classics. The theaters' seats have tables in front of them for guests' food and drinks that are delivered to their seats. Some theaters also have recliner chairs.
The bankruptcy reorganization seemed to turn things around as the Austin, Texas-based company reportedly generated $134 million at the box office in 2023, which was more than a 25% increase over 2022. In March 2024, the company sought a buyer for its 41-theater chain, with 17 franchise-owned sites, located in 13 states.
The Covid-19 pandemic, motion picture writers' and actors' strikes, and dismal movie industry performance are the reasons Alamo Drafthouse franchisee Two Is One, One is None filed for Chapter 7 liquidation and shut down its six locations on June 6, WFFA-TV in Dallas reported.
The Alamo franchisee has closed its locations in Dallas, Denton, Lake Highlands, Las Colinas and Richardson, Texas and Woodbury, Minn. The Alamo Drafthouse parent is working quickly to get those locations back up and running, an Alamo spokesperson reportedly told WFFA.
Related: Veteran fund manager picks favorite stocks for 2024
