Ride could soon be over for Six Flags
TEXT OF STORY
Steve Chiotakis: With gasoline prices down from this time last year and the weather
warming up, people are looking for some family outings. But one theme park company continues to have trouble circumventing the fallout. The CEO of Six Flags says one of its biggest debt holders won’t meet to discuss restructuring. And that could wind the company up in bankruptcy. Here’s Marketplace’s Caitlan Carroll.
Caitlan Carroll: The big theme park chain Six Flags has been on a scary ride for awhile. The company’s been struggling under a mountain of debt. So despite a slight bump in revenue at its 20 theme parks last year, Six Flags may have to declare bankruptcy. Unless its creditors agree to a restructuring plan.
CreditSights analyst Chris Snow says Six Flags has a lot worth saving:
Chris Snow: It’s generally a good business with strong margins. All the interested parties right now are going to be happier if the company were able to stay as a going concern.
Happy because as people travel less, they’re spending more time at local theme parks. And most of them are offering big discounts
Robert Niles is founder of the Web site ThemeParkInsider.com:
Robert Niles: This is gonna be a brutal year for the tourism industry, and the industry understands that.
And if there’s one thing Americans understand, it’s companies hanging on for dear life.
In Los Angeles, I’m Caitlan Carroll for Marketplace.
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