Apparently Astroworld was just the beginning... http://www.nytimes.com/2009/06/14/business/14sixflags.html?ref=business Deep in Debt, Six Flags Is Bankrupt Article Tools Sponsored By By MICHAEL J. de la MERCED Published: June 13, 2009 Six Flags, the theme park operator, filed for bankruptcy early Saturday in Delaware after failing to reach an agreement with lenders to reorganize its debt. Six Flags is the latest company to prove unable to cope with its debt load at a time when previous solutions like refinancing are largely unavailable. The theme park operator, which had $2.4 billion in debt, faced nearly $300 million in payments to preferred stockholders due in August. In a statement, Six Flags said it was seeking court approval for a restructuring plan it had already negotiated, which has the unanimous approval of its lenders. That proposal would eliminate $1.8 billion in debt and slice off the $300 million in preferred stock payments. “The current management team inherited a $2.4 billion debt load that cannot be sustained, particularly in these challenging financial markets,” Mark Shapiro, the chief executive of Six Flags, said in a statement. The filing is a blow to Dan Snyder, the owner of the Washington Redskins, who took control of Six Flags in 2005 after waging a proxy fight and holds about a 6 percent stake in the company. He sought to turn around the company by installing new management, led by Mr. Shapiro, and selling underperforming parks. They improved the remaining parks by banning smoking, increasing security and having more costumed characters like Tweety on the grounds. Other major investors include Cascade Investment, controlled by Bill Gates, which held an 11.1 percent stake, and the hedge fund Renaissance Technologies, with a 5.5 percent stake. Six Flags said in its statement that the filing came despite a good 2008, in which the company cut its net loss to $135 million from $275 million a year ago. Its net loss for the first three months of 2009 narrowed nearly 7 percent from the period a year earlier, to $146.3 million. But the company had a 24 percent drop in revenue over the same period, affected by lower attendance at its parks and less spending by customers.
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Well fock...I was hoping to take the kids to various six flags parks around the U.S. for a road trip...will they remain open?
I swear, just the torrent wave "river" is enough to keep me occupied all day. I adore Schlit. I need to plan a day to go this summer.
serves six flags right for those god awful commercials. makes me want to kill someone, namely the creepy old man and the advertising firm that created it.
MORE FLAGS...MORE FUN!!! we saw that ad and my wife was like: "really? someone saw that and said, 'YES! there's our commercial! let's go with that one!!'"
they have been losing money for over ten years now. it was ever so evident how bad it was on a recent field trip to Magic Mountain in Valencia CA. The entire day was a money grubbing scam opportunity for Six flags, so they could milk every last penny out of the customers before they inevitably filed for bankruptcy. From "Mandatory" $1 lockers at certain rides ($14 for all-day), the $20 all day refill wristbands (for the $12 cup), the Flash pass "Regular" $35, to the Flash Pass "Gold" $62, to the $7 cotton candy, popcorn, and beverages, not to mention they ban outside food. Family Park my a**. We had to weasal our food in with the "special dietary needs" restriction. and their lines...Ugh some up to 2 or 3 hours. granted they are much better, but for the whole experience, I'd rather go to Disneyland. They are much easier on the wallet and friendlier to their guests, outside food allowed in, cheaper concessions, free Fast Pass, etc...
really makes you question the leadership of a lot these huge companies when things like that get approved.
went to magic mountain as a kid. never forget it was a wed, lines were an hour long. badass park though. went to fiesta on spring break, the prices are unbelievable now. i don't buy the argument that video games, and other entertainment options are killing amusement parks. nothing can replace the thrill of a good roller coaster. I really don't understand what happened to six flags. its mismanagement. like astroworld, they sold it because they could make more cash than operating it.
