Six Flags contemplating closing parks throughout the US after merger with Cedar Point firm
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The parent company of Six Flags Magic Mountain is considering closing some of its 42 theme park attractions across the US, following a major merger earlier this year.
A quarterly earnings report from the newly formed Six Flags Entertainment Corporation outlined plans for a “portfolio optimization” which may include closing or selling off some of its locations.
The company was created after Six Flags merged with regional entertainment giant Cedar Fair in July following approval from the Department of Justice, in a deal worth roughly $8bn.
In the report, published on Wednesday, SFEC provided a rough outline for its long-range plan, titled “Project Accelerate.” The project promised a “comprehensive review of the portfolio to evaluate the potential divestiture of non-core assets to help reduce leverage.”
A potential closure or sale of some Six Flags amusement parks “are now on the table,” according to Theme Park Insider.
The announcement comes as SFEC acknowledged that it had delivered “solid results” in its first quarter as a combined company, despite considerable disruption.
“While extreme weather and other operating disruptions at critical points during the third quarter impacted our financial results, consumer demand for our parks remained strong during normalized operating conditions,” said Six Flags president and CEO Richard A Zimmerman.
“The strength of our business and considerable demand for our parks was particularly evident over the past five weeks, when attendance was up more than one million visits compared to combined legacy Cedar Fair and legacy Six Flags attendance over the same period last year.
The new Six Flags reported more than 21 million guests for the period ending September 29, 2024. With an average guest in-park spending of $61.27, net revenues totaled $1.35 billion for the quarter.
Zimmerman added: “Since completing the Merger, we have been finding ways to operate more efficiently and reducing unnecessary costs while still delivering a high level of guest service.”
The combined portfolio of Cedar Fair and Six Flags includes 27 amusement parks and 15 water parks in the United States, Canada and Mexico that attract 48 million visitors a year. Six Flags owns seven of the Top 20 North American amusement parks based on annual attendance, according to the TEA/AECOM annual report.
Zimmerman added: “Four months ago we launched Project Accelerate, a transformational initiative to harmonize our operations and unlock the full potential of the new Six Flags. “I’m highly confident that focusing on our core strategic objectives will deliver superior and sustainable value creation over the next several years, enabling us to reach our new target of at least $800 million of annual unlevered pre-tax free cash flow by 2027.”
It comes following the announcement that New Orleans’ former Six Flags theme park, which shuttered in the wake of Hurricane Katrina, would finally be demolished.
Demolition is underway at the eastern New Orleans site of the decaying complex of carnival rides and buildings that became a symbol of the 2005 storm’s enduring devastation, The Times-Picayune/New Orleans Advocate reported this month.
Source: independent.co.uk
