Statement from the City of Richardson on the Alamo Drafthouse Cinema Closure Announcement

Like many in our community, the City was deeply saddened to see today’s bankruptcy and closure announcement involving the franchised Alamo Drafthouse Cinema locations in North Texas including the Richardson Heights location, DFW’s first Alamo Drafthouse.

Our sympathy goes out to the theater’s employees and customers who are affected by today’s announcement.

We are also aware that Alamo Drafthouse’s corporate parent issued a statement today indicating that they are “working as quickly as possible to get Alamo Drafthouse Cinema back up and running in these cities.” We will continue to work with the parent company to encourage those efforts.

Since opening in 2013, this cinema has served as a high-quality anchor destination in the Heights Shopping Center and has been a catalyst in the City’s ongoing efforts to revitalize The CORE District. The surrounding area now offers a wide array of popular, eclectic, independently owned restaurant, shopping and entertainment options for the community’s benefit and enjoyment.

In January 2024, the City approved an economic development incentive award to the franchisee to support further improvements to its Richardson Heights location, in hopes of bolstering its competitiveness. The City was aware that the franchisee, like the entire movie business, was facing numerous financial headwinds, including the lingering impact of COVID-era closures, as well as the recent Writers’ and Actors’ strikes and other industry-wide challenges.

At this time, only half of the City’s economic development incentive has been delivered to the franchisee, as facility upgrades were still underway. From this point forward, no further award will be given until further information is made available on potential reopening plans. There are also “clawback” provisions in the economic development incentive agreement, which may allow for recovery of some or all of the already-awarded $200,000, if the location is ultimately unable to reopen.

It is unknown at this time how much the franchisee’s creditors will recover during the Chapter 7 (liquidation) bankruptcy proceedings.

“Though we’re certainly disappointed by today’s announcement, we remain optimistic that this will be only a short-term setback. The City is already actively engaged with the shopping center owners and other interested parties to ensure the sustainable, long-term vitality of this important area in the heart of Richardson,” said Richardson City Manager Don Magner. “We will continue to be proactive and strategic in our ongoing efforts to support and encourage catalyst projects and revitalization efforts throughout The CORE District, including not only the Heights neighborhood, but also the dynamic China Town, Downtown, Interurban and Lockwood neighborhoods.”