Note the Katrina watermark on the sign (still visible; the park has been abandoned since 2005). Appropriate, no?
Posted on 06/13/2009 8:39:41 PM PDT by SeekAndFind
Debt-ridden amusement park operator Six Flags, controlled by Washington Redskins owner Dan Snyder, has filed for Chapter 11 bankruptcy reorganization.
The New York-based chain of parks has been trying unsuccessfully this year to renegotiate terms with lenders on hundreds of millions of dollars in debt.
Six Flags parks, including its Six Flags Great Escape and Indoor Water Park in Queensbury, will continue to operate as usual under reorganization.
“The current management team inherited a $2.4 billion debt load that cannot be sustained, particularly in these challenging financial markets,” said Six Flags chief executive Mark Shapiro in a statement. “As a result, we are cleaning up the past and positioning the company for future growth.”
Snyder, who took control of the company in a board room battle more than three years ago, and the management team he appointed have been unable to return Six Flags to profitability. The company reported a $146.3 million first quarter loss and a sharp drop in revenue, despite a modest two percent increase in park attendance compared to a year ago.
Six Flags is seeking bankruptcy court approval for a prearranged restructuring that would cut its debt by $1.8 billion and wipe out more than $300 million in preferred shareholder stock.
Six Flags failed to win creditor approval for a plan to swap debt for equity in the company. As a result of its bankruptcy filing, that exchange offer is no longer on the table, it said.
Six Flags sold several properties last year to raise capital. It still operates 20 amusement parks in North America.
Six flags over Texas is the slogan used to describe the six nations that have had sovereignty over some or all of the current territory of the U.S. state of Texas
Spain
France
Mexico
Republic of Texas
Confederate States of America
United States of America
The Six Flags near us, in Largo, MD, is a sewer. Kinda funny in a sad sort of way, considering that it’s the one Snyder lives closest to, just a stone’s throw away from FedEx Field where his beloved Redskins play.
ROFLOL!!! The man has brass ones if he said that with a straight face.
I went to one as part of a corporate event. What they didn’t tell us was that it was also Gang-Night, which made the experience quite uncomfortable.
Glad to see them going away.
Now that’s one rollercoaster situation
How 2008 of them. I thought the bankruptcy courts had been disbanded. I guess they didn't give King Zero any donations.
Hospitality is the next group of businesses to get bailed out and bought by the government.
Apparently they’re running up the white flag.....
From an interview with Six Flags CEO Mark Shapiro less than two months ago:
How are the parks doing?The parks are cleaned up and getting the highest guest satisfaction scores in our history. We said we wanted to increase the total revenue-spend-per-guest by 20% and we hit 21% after three years. We wanted 30% EBITDA margins and we clocked in just above that this past year. We went from a company that loses $100 million in free cash flow a year to cash flow positive.
You had said you wanted Six Flags to be a venue for advertising?
We reach 25 million people a year who spend eight to 10 hours in our parks. Last year we did $59 million in ad revenue.
How's the summer shaping up?
I know we are well-positioned. To get into a movie, it costs $10; to get into Six Flags, everyone pays kids' pricing, which is $29.99 a day. Our season pass is $59.99 for the entire year, unlimited visits. In this marketplace, it is a great solution, especially for families that are going through trying times. We understand that the country is in a time of sacrifice right now. At same time families want an escape in tough times. We believe we are a solution to that.
You think you are in a better position than Disney in this climate?
Disney is different situation. It is a "destination park." I’m not sure in these trying times consumers have the appetite for all that comes with a trip to Disney. It is an extraordinary experience, but it is a plane ticket, it is a hotel. All the regional theme parks are in good shape as long as [they deliver] superior quality. Three years ago we couldn't say that. We've done a total makeover.
We took the kids there once about 15 years ago. The other attendees scared me -yutes travelling in gangs.
Note the Katrina watermark on the sign (still visible; the park has been abandoned since 2005). Appropriate, no?
I’ve been to a few Six Flags parks, and they are all full of gang banger types. The bad behavior of some of their “guests” will dissuade better customers from ever returning. Maybe it’s already a self fulfilling prophecy. Critical masses of gang bangers around scare off the regular folks and they won’t want their kids there. Which in turn means that the percentage of good people there keeps dropping.
That was exactly my experience at Knott’s Berry Farm in CA - a dump populated with thugs and gang-bangers. I know its a lot cheaper that Disney, but apparently there is a reason for that.
I agree, but in defense of Six Flags, just what can they do?
.
Just try preventing gangs from entering and see what kind of lawsuits you get.
Six Flags is too Big to fail. That is the lesson we have learned from GM and the rest. Your bailout is on the way.
I doubt that there is anything that Six Flags can do about the people who go to their parks. There are probably regulations about disorderly conduct that could allow them to throw people out if they misbehave. But such regulations could only be used in the most extreme circumstance, I’m sure.
It’s sad, but it does seem that less than desirable people have made the experience at Six Flags parks less fun for the rest of us.
Kind of like what happened to the Mall of Memphis.....or Century Plaza in my home city (Birmingham). When the ratio of thugs/good folk get tilted to far to the thugs, decent people will stay away in droves.
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