Author Topic: Six Flags Files for Bankruptcy (Read 10147 times)

jglonek · « **on:** June 13, 2009, 03:46:03 PM »

This morning Six Flags filed for Chapter 11 Bankruptcy in Delaware. You can read some detailed information about it here, a nice writeup explaining things can be found here.

The long and short of it is - you have nothing to worry about!

All parks are open and will remain open, and will remain under Six Flags' control. And the company will still exist once these bankruptcy proceedings are over.

This is actually a good thing, and this probably would have happened whether or not the country was in a recession. The current management brought in by Dan Snyder in 2005 when he gained majority control of the company has turned things around. Six Flags now know how to make money, and in fact has been doing better the past few years with its finances. The problem has been that the new management inherited a HUGE debt load (over $2 Billion) from the previous management that was forced out. And that debt came from a series of bad decisions over the past decade, and is just something the company could not shake off.

Here's hoping the company comes out of bankruptcy as soon as they expect, and things turn around for them. We could actually have a profitable company in the future if they can fix things now, and that just means better things for all of us.

Oh, and the one article mentions that due to the real estate market not doing too hot right now the company was unable to sell unused land around Great Adventure. GOOD! I bet they could come up with something great to use it with if they have the time and the money.

GADVwow · « **Reply #1 on:** June 13, 2009, 06:41:10 PM »

http://www.gadvoutpost.com/home.php/topic,3241.0.html

Sigh

Steve · « **Reply #2 on:** June 13, 2009, 07:02:57 PM »

He did reference your article.

GADVwow · « **Reply #3 on:** June 13, 2009, 07:06:10 PM »

...which isn't really mine, but a press release from Six Flags. That's not the purpose of the sigh.

This has been coming for so long. I just hope it works out well in the end.

Steve · « **Reply #4 on:** June 13, 2009, 07:17:53 PM »

I'm sure it will. I can only see a brighter future for the company from this.

WadeJ · « **Reply #5 on:** June 13, 2009, 08:18:36 PM »

It sucks it came to this but I only see an uphill battle now that it is over with.

jglonek · « **Reply #6 on:** June 13, 2009, 08:22:06 PM »

Here is a CNN article about it as well:

http://www.cnn.com/2009/US/06/13/six.flags.bankruptcy/index.html?eref=rss_topstories

jglonek · « **Reply #7 on:** June 16, 2009, 01:36:44 PM »

Here's another article about an inteview some journalists did with Mark Shapiro. I hae to say it's kind of depressing.

http://themeparks.about.com/b/2009/06/16/despite-bankruptcy-six-flags-ceo-not-coasting.htm

Here are some of the bits of it that don't sound great to me.

Quote

The CEO thinks that a $100-million annual capital investment is all the company can afford, and that he wants to add something new to every park each year. That's why, Shapiro says, the days of Six Flags mega-coasters may be over. "If I put in a $25-million coaster at one park, that leaves me with only $75 million for the rest." He pegged the new Terminator Salvation coaster at Six Flags Magic Mountain at $10 million and said that the Bizarro coaster makeover at Six Flags New England cost $7 million. Shapiro pointed to the previous management's investment of $50 million in Kingda Ka at Six Flags Great Adventure as a prime example of how it racked up insurmountable debt. He also said that while Kings Island's Diamondback and Cedar Point's Maverick are great coasters (I'll second that!), he doubts whether the parks will be able to realize a reasonable return on their investments.

Shapiro admitted that, while the parks have improved under his watch, "We're not where we need to be." He said that the previous management deferred much-needed maintenance and infrastructure improvements in favor of flashy coasters. Shapiro wishes he could commit $200 million to capital improvements, but that given his budget constraints, bringing the parks up to snuff will take time.

PcMan · « **Reply #8 on:** June 16, 2009, 01:53:16 PM »

"He pegged the new Terminator Salvation coaster at Six Flags Magic Mountain at $10 million and said that the Bizarro coaster makeover at Six Flags New England cost $7 million."

what a waste of $7 million Dollars for Superman they could have built a complete new coaster with that Money
I wonder what Bizarro at Great Adventure cost if anywhere near the 7 million mark that would / could have been a lot of Flats
Yes It will bring more attention to Medusa but I don't think as much as a REAL NEW coaster or ride would had.

they keep talking about these 25 million rides and about family rides but spend 7 million to change one of the #1 rated coasters in the world ?

Build a $10 Million coaster then here more wood

we are good with the 25 millions coaster for awhile

How about a Family Wood coaster that would have been money better spent then redoing Medusa

Now I just hope to stock goes up some before its gone completely Like GM did

FYI: as of 2pm Tuesday 6-16-2009

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darkridedan · « **Reply #9 on:** June 16, 2009, 02:17:04 PM »

Not to mention how many tilt-a-whirls it would have bought. ;-)

I understand his business model less than I understood Gary Storys. On his watch:

SFGAm removed a water ride and coaster. He replaced them with a water ride and a coaster.
SFStl had a Rotor removed and he replaced it with two coasters.
SFoT had nothing removed and he added a coaster.

He oversees the closure or removal of 12 rides at SFGAdv and replaces it with 1 coaster. I've never followed a business which downgrades its franchise, its main store, its flagship. If he's looking to bring in more business, why sell less product? The main gate is the product, not the slice of pizza or the locker rental.

FrontRowGirl · « **Reply #10 on:** August 25, 2009, 05:05:23 PM »

I hope they don't have to close it. My friends told me they might close the park.

WadeJ · « **Reply #11 on:** August 25, 2009, 08:12:37 PM »

I can assure you with 110% confidence that Great Adventure is NOT closing. It is in fact one of the #1 parks in the entire chain.

themeparkrider · « **Reply #12 on:** August 25, 2009, 10:39:37 PM »

thats good news, I was thinking for sure that next year the title would be Time Warner, Great Adventure!

overlord · « **Reply #13 on:** August 27, 2009, 10:35:39 AM »

Quote from: FrontRowGirl on August 25, 2009, 05:05:23 PM

I hope they don't have to close it. My friends told me they might close the park.

Its the spreading of rumors like that which lead to parks possibly closing down by scaring people into not going and the park loses revenue.

B-mac · « **Reply #14 on:** August 27, 2009, 02:52:01 PM »

this has happened before. It happened a few years before the "war on lines" campaign in '99. (when medusa was built). I think that the same thing will happen again with a huge ad campaign.

For those who haven't noticed:
-Great adv. is the ONLY profiting park under six flags name this year.
-they've been beyond, well beyond, maximum capacity for the past 3 weeks consecutively.
-Bizzaro(Medusa) is back on it's feet again and louder than ever.
-Bizarro is still the most remote ride in the park.
-Flash passes have gone up $20 this year
-They should be getting a new ride soon (2010 or '11)
-Rolling Thunder will be torn down in two years or less
-Bizarro might be getting a buddy soon too.

overlord · « **Reply #15 on:** August 27, 2009, 03:10:59 PM »

I have a problem with your statement with the maximum capacity. I do believe that the park can never go over that capacity or else it will be in a deep deep deep hole with Jackson Township.

themeparkrider · « **Reply #16 on:** August 27, 2009, 03:44:23 PM »

why do you say RT will be torn down? theres no evidence!

WadeJ · « **Reply #17 on:** August 27, 2009, 06:10:39 PM »

RT isn't going anywhere and they haven't come close to capacity.

rjholla2003 · « **Reply #18 on:** August 27, 2009, 11:55:30 PM »

Quote from: B-mac on August 27, 2009, 02:52:01 PM

this has happened before. It happened a few years before the "war on lines" campaign in '99. (when medusa was built). I think that the same thing will happen again with a huge ad campaign.

Chapter 11 happened before? I don't think so.

Quote

For those who haven't noticed:
-Great adv. is the ONLY profiting park under six flags name this year.

I'd say false. Link to where you saw that?

Quote

-they've been beyond, well beyond, maximum capacity for the past 3 weeks consecutively.

False. If they ever got that full, they would stop admitting guests into the park. That is a HUGE safety hazard, not to mention the lack proper guest service that the park would be able to provide due to overcrowding.

Quote

-Bizzaro(Medusa) is back on it's feet again and louder than ever.
-Bizarro is still the most remote ride in the park.

True, but was that ever under dispute? I also don't see what that has to do with anything.

Quote

-Flash passes have gone up $20 this year

I'm pretty sure FlashPass was NEVER as low as $17 this season, or last season.

Quote

-They should be getting a new ride soon (2010 or '11)

The chain already announced that they are making plans for major additions for every park in the chain for 2011 since that is the chain's 50th Anniversary. Seeing as that will be a big year, one would probably expect a quiet year to not only gear up for that, but to regain footing post-recession.

Quote

-Rolling Thunder will be torn down in two years or less

After they have been working on it year after year, it's smoother than I can ever remember (at least on the left side), and they have El Toro interacting with it? I doubt that. Where do you get that from?

Quote

-Bizarro might be getting a buddy soon too.

I guess anything's possible in 2011, but what exactly are you thinking?

themeparkrider · « **Reply #19 on:** August 29, 2009, 10:39:40 AM »

i don't really know, but I have some ideas

Steve · « **Reply #20 on:** August 30, 2009, 12:03:01 AM »

The park has not been near closing the park down because of capacity in several years.

Dubya91 · « **Reply #21 on:** August 31, 2009, 01:12:00 AM »

I dont believe any of the coasters are moving anywhere, Ka is the lead runner, but thats even a long shot...

themeparkrider · « **Reply #22 on:** September 06, 2009, 12:18:36 PM »

yes all coasters are safe for the time

PcMan · « **Reply #23 on:** September 07, 2009, 12:30:13 AM »

all rides are safer then walking or driving down your local road or even stepping out your bathtub/shower

kingdakafan · « **Reply #24 on:** September 07, 2009, 01:37:22 AM »

I see a new wood twister coming out of this!

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Author Topic: Six Flags Files for Bankruptcy (Read 10147 times)