For instance, Hertz is going through Chapter 11, but you'd never know as a customer.
During Covid, a client representing 20% of my income declared bankruptcy after already waiting > 6 months for a group invoices to be paid.
They’ve offered “secured creditors” nearly full repayment, while everyone else has been offered literally 1¢ on the $1.
Businesses tend to go the other way and be more accommodating to larger customers like continuing to fulfill their orders and not taking action at, say, 90 days late.
Secured credit can be one way to resolve that without being super strict on late payments or wanting repayment of limited credit.
Here's an example: https://www.nationwide.com/business/insurance/accounts-recei...
The folks who slow pay are a paint to deal with overall I've found, so no big loss when they go. Or you don't get paid, which is even worse! And yes, they will slow pay anyone who lets them.
For someone like Alamo so adversely affected by Covid but with an otherwise (AFIACT) healthy business in non-covid times its a reasonable approach to try to get out from under-water without undue pressure from creditors.
You see Chapter 11 more around extraordinary operating circumstances, recesssions etc. Where businesses think they can get back on their feet given some time.
There's a lot of stuff that can done to reduce the costs of a lease beyond just rent reduction.
I've seen retail space in amazingly hot markets be empty for 5+ years now.
The equity will clearly not make any money and the business does worse in the long-run which presents more risk for more junior creditors (the company can not re-invest in growth, business contracts are more onerous as you have credit risk, low morale w/ employees, etc.).
But Chapter 11 is not something a company can do at anytime. You have to prove that the restructuring of the equity and debt makes sense to either (1) your shareholders and creditors or, if that fails, (2) a judge.
Additionally, employees and the board will have equity that will get cancelled or receive pennies. So if it's marginal on whether there could be equity value someday, the company is not going to do it. On the flipside, it's pretty frustrating if you can't issue stock options that will have value someday.
Overall Chapter 11 bankruptcy is a great thing for business... it allows companies to breathe again and re-invest in growth. As far as cons...obviously the equity investors and maybe some of the creditors lose a call option on their investment (not worth anything today, but could be in the future). But that call option may be compensated for in the restructuring agreement. But the biggest con IMO is that Chapter 11 is expensive, and usually bankers / lawyers make outrageous fees here.
That was a lot and sorta of scattered. But if you see "Chapter 11" bankruptcy you shouldn't always think "this business sucks" or "this business doesn't make a profit," but should put more blame on a financier somewhere who created a capital structure that wasn't sustainable.
 The company may also have upcoming maturities in more junior debt, and the more senior creditors don't want them to pay the principal. Liquidation preference is a good search term if you're interested in this.
Edit: Also worth noting that creditors don't always take a 0. Sometimes their debt is reinstated, sometimes they receive equity for their debt, and sometimes they receive pennies just to get them to agree (cheaper and faster for everyone to agree than to have a judge decide). All depends on the valuation of the business and where their debt sits.
That's intended as a good example (in the sense of "clear, characteristic")? I thought oil extractors were expected to hedge or buy financial instruments that ensure they'll be able to sell at a good enough price given a project's costs. And even if not, it doesn't seem accurate to call that a case of "poor performance" but rather, external factors.
Isn't that what Dun and Bradstreet is for smallish businesses and Fitch, Moody's and S&P do for businesses issuing bonds?
Yes, not every business is in D&B, and it takes effort to get a record there, but it's not as if there isn't a commercial credit system, it's just not so engrained into everything like the consumer one.
For any sufficiently large transaction, even for a person, such as a home mortgage, there will be manual review of people's incomes and assets, just like there is for businesses.
Spain: “concurso de acreedores”. The business asks the Government for a way to have lenders (acreedores) restructure/redimension the debt.
This way workers can still have job in the future, assets keep their operating value...
For most cases yes. I don't know the exposure risk of Hertz in this regard, but in a Chapter 11 it's worth remembering that any people who are legally owed money (i.e. unpaid lawsuits) are counted as 'creditors', I think based on how the GM/Chrysler bankruptcies played out, 'unsecured' ones at that.
Chris Shepherd's Southern Smoke Foundation is doing pop ups in conjunction with other businesses and donating the profits to help food service workers impacted by the pandemic; both financial aid and mental health care. Laudable and his food is good.
The Royale with Cheese was a solid go-to in both, and both venues were excellent for highlighting & enjoying local varieties. And / but when you, your date / group / cohort can decide whether to dine before, during, or after the film, the whole experience is better.
This seems to be an unavoidable side effect of trying to scale like this, but I guess its just something you have to suck it up and move on (there is a up market drafthouse clone near my house, although their food was also on a decline pre Cov19.).
Someone told themselves they'd make it up in volume but they were mistaken. It's unfortunate because surely Alamo like any other theatre makes far more in concession sales than ticket sales. Their CEO needs to completely rethink his strategy and return Alamo to its roots, or more likely get booted in favor of someone who will.
Contrast that with seeing a rat scurry across the floor at The Metreon's AMC.
Even if people weren't talking to each other, there's a lot of low volume conversations happening with the waiters and people use their phone to illuminate menus and to see what they are eating.
See an angry voice mail from one customer https://www.youtube.com/watch?v=1L3eeC2lJZs, or the playlist with a long list of PSAs, many of which include celebrities, asking you to please not talk: https://www.youtube.com/playlist?list=PLpX5OvrhWl9I59CYEx_Zt...
Props to anyone who can get Neil Gaiman to make a please no talking PSA in the form of an Agnes Nutter prophecy.
Depends entirely on the movie. If it's yet another stupid superhero movie, people yelling at the screen makes it much better.
Oh, so you've seen Master Pancake Theater?
I know they'll survive in some form, but this is tough, y'all.
Between Drafthouses in Yonkers (NY) and DTLA, I've seen Live Programs with Crispin Glover, Penn Jillette, and makers I hadn't known previously. I've been to moderated screenings with audiences half-full of first-timers seeing Blazing Saddles, A Day at the Races, Spirited Away (subs v dubs), and me as the first-timer seeing Casablanca front-to-back on the big screen. Their pre-show reels are crafted with skill and care and with clever relevance to their feature films from multiple angles.
The org is run by folks who clearly love movies and create experiences for others who do too. They seem like they would be ethical in their handling of vendor relations through Chapter 11, though that's always TBD.
'Alamo Victory' is a good program w/r/t heds-up re event schedule, ticket-less admittance & card-less settle-ups, and reasonable perks for going to pictures. Victory's newsletter and mobile apps are a good place to start letting fans know how we can help.
Alamo's business model in a post-pandemic world is still a huge money maker.
And the biggest part for me is they have ZERO commercials while you're waiting for it to start. They show silly bumpers, youtube clips and internal promos.
DOJ vacated the consent decree on studios owning theaters, but that doesn't mean that a studio exclusively screening its films at its own theaters will be allowed.
I kind of doubt there will be a big investment in studio owned theaters anyway. Maybe studios will pick up some of the closing locations to make sure there's a theater within reasonable drive of everyone, and maybe some flagship theaters in Hollywood.
I can't find an online source for this, but a decade ago I heard that the IFC Center in NYC was the most profitable (per-screen) cinema in the US, due to IFC Films already being the distributor of the films they show -- so no added distribution costs.
Then again, they've also controversially used non-union projectionists, so this might have just been a talking point on one side of that debate.
Who's going to stop them? "We're pro-business" says both R and D.
I don't understand the line of thinking that goes that the government WANTS to destroy businesses and economic activity and reduce their own tax base, income, and ability to operate...
> Please don't use Hacker News for political or ideological battle. It tramples curiosity.
> Eschew flamebait. Don't introduce flamewar topics unless you have something genuinely new to say. Avoid unrelated controversies and generic tangents.
As part of this bankruptcy, Alamo Drafthouse will close down underperforming locations, including the flagship Alamo Drafthouse Ritz location in downtown Austin on Sixth Street.
I've been there for a lot of special Alamo shows, including Master Pancake shows. It will be sorely missed.
> This site is currently unavailable to visitors from the European Economic Area while we work to ensure your data is protected in accordance with applicable EU laws.
While I'm sure European visitors are "important" it's mostly a US Brick and Mortar business so it's not that "important" to meet GDPR requirements apparently.
They do? Looks like typical mediocre American pub fare...
Someone further upthread suggested they should partner with local restaurants, and I think that's a great idea. Quality food trucks would be a perfect fit.
Of course European movie fans are important, in fact, you’re probably gonna get a free pitcher of beer if you say you came all the way from Europe and going to the draft house was part of your bucket list.
Realistically, most Europeans interested in going to an Alamo Drafthouse are already in the US, so they won't see that message.
edit: I'm unsmart
The fact that masks are politicized at all shows how badly it was managed.
I see that the founder(s) are still involved but I can't help think that it'll just be a slow decline until the drafthouse is indistinguishable from AMC or other chains and their infinite commercial pre-rolls and dirty theaters.
I hope I am proven wrong OR another theater that respects the art springs up to fill the potential void.
On the downside, as the article mentions, some of their lower-performing locations will likely close.
Spent many hours in Austin TX Alamo's during the SXSW festivals. A wonderful experience. A little like the UKs Everyman chain (but with stunningly entertaining kookie ads running).
Alamo getting priced out of Austin? Thanks Joe Rogan!
Assuming that a Chapter 7+then+future_reboot was possible -- who benefits the most from allowing the company to attempt to limp along until the pandemic ends intact? Are there a significant percentage of company employees who are currently getting paid with benefits during the pandemic -- or is this mainly about making it seem as likely as possible that the business will come back so that the current set of non-compensated employees will try to limp along on their own without pay in such as way that they will come back after the pandemic is over?