Saturday, June 13, 2009

LaRonde owners bankrupt ???

Usually the escapism type of companies are generally almost recession proof,as people like to go to shows or amusement parks or movies,when economies slow down,.but according to a story in today's Gazette, the owners of Laronde (Six Flags Entertainment ) are filing for Bankruptcy...........  I'm sure the City of Montreal or a new owner would gladly step up to the plate if they need too, to keep Laronde operating,but parks have been known to disappear,Dominion Park,.then Belmont Park,perhaps now Laronde itself,.......I would imagine  developers would be drooling over the prospect of turning Saint Helen's island into CONDO World,....that is a lot of prime real estate right in the middle of Montreal,perhaps turning it back into a park like setting would be good...................What Say You ???

  here's the copy from the Gazette:

CHICAGO -- Six Flags Inc, the world's largest regional theme park company, said Saturday it filed for bankruptcy protection.

The New York-based company operates amusement parks across the United States, Mexico and Canada, including Montreal's La Ronde.

Six Flags said it filed for Chapter 11 protection with the unanimous support of its lenders' steering committee.

The plan will result in a deleveraging of the company's balance sheet by about $1.8 billion, as well as the elimination of more than $300 million in preferred stock obligations.

"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.

"As a result, we are cleaning up the past and positioning the company for future growth."

Shapiro said the action will not affect day-to-day park operations. The bankruptcy filing "paves the way for a full revival of the company," he said.

Six Flags, which offers 800 rides at its 20 parks, had been burdened with a massive debt load and a looming cash payment in August.


Guy Billard said...

How can a company make any money with an amusement park that is open 3 or 4monts per year or a quarter of a year, I'm no genious and even I can figure that out. Bills keep coming in even when you are closed. These companies keep spending millions on new rides without figuring out how they are going to pay for them. They deserve the troubles they are having.

Maggie McKiernon said...

If you have visited a Six Flags park recently, you might know how they could make money! The price of admission is the same, wether you ride or not, and it is not cheap. Food onsite is very expensive and it seems that all of the most exciting rides have an extra fee attached. You can be sure that each person entering the gates is dropping about $100. for their day of entertainment.

Les F said...

Thanks Maggie , I haven't been to an a amusement park for years,otherthan walking through the local annual visiting carny's that set up for various weekends,but I don't go on the rides anymore,as all the kids are grown, & although I love all the thrill type rides,I just don't go to the parks,So a hundred per,can make for an expensive day,if you have a bunch of kids .....Yikes !! Now that I think of it , the Edmonton Park was the last one I was at,for their Klondike Days (I think they call them that)....before that it may have been Expo86 in Vancouver ,and the PNE with the kids over the years......HF&RV