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Six franchised Alamo Drafthouse Cinemas sites have been closed and have filed for Chapter 7 bankruptcy.

Operator Two is One, One is None LLC made the announcement on Thursday after the cinemas had run for more than 13 years. Five are in North Texas and one is in Minnesota.

The news appeared to take Alamo Drafthouse by surprise. The company said it was ”working as quickly as possible to get Alamo Drafthouse Cinema back up and running” in the affected cities.

Franchisee Two Is One, One Is None cited reasons for the closures including post-Covid audience drops compounded by lower supply after the Hollywood strikes, adding that Q1 of this year “has been the worst performing quarter in movie-going history”.

Also cited was the fact the operator was contractually obliged to keep under-performing sites open, franchise fees were high. The company said it infused more than $3.5m into payroll, capital and operations in 2023 and the first half of 2024.

It added that attempts to seek relief from the franchisor and close the least competitive sites were unsuccessful.

“We are deeply saddened to find it necessary to take this step,” Two Is One, One Is None said. “We are grateful to all our employees who put in the work, day in and day out to produce a special movie-going experience and to our many loyal customers for whom it was a pleasure to provide such a special experience.”

It continued, “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.”

The closed sites are in Richardson, Las Colinas, Lake Highlands, Dallas, and Denton in Texas, and Woodbury in Minnesota.

An Alamo Drafthouse spokesperson said, ”We are very disappointed to learn today that our franchisee, which operates five locations in Dallas-Fort Worth, TX and one in Woodbury, MN has filed for Chapter 7 bankruptcy and is closing their business effective immediately.

”We are heartbroken for the franchisee’s teammates and the local film communities, however, we are working as quickly as possible to get Alamo Drafthouse Cinema back up and running in these cities. All other Alamo Drafthouse locations are operating as normal, with continued expansion plans across the country.”