Cedar Fair Financial Troubles

[nitrofan]

I want to start this thread off making it clear that as of now, CEDAR FAIR IS NOT GOING BANKRUPT! I just thought it was time to start discussion of that possibility. It has been rumored for a while that Valleyfair!, World's of Fun, and California's Great America could be sold/closed in the near future. It also concerns me that the company will probably be spending over $70 Million on new coasters this year! They haven't been in the best financial position since purchasing the Paramount Parks, and I just thought it was time to start discussing it.

What do you think?

[palmer]

Knpwing that they own over 10 parks, they probably wouldn't go bankrupt. KD and KI are big money-makers. They get big crowds and more crowds more money.

[nitrofan]

Knpwing that they own over 10 parks, they probably wouldn't go bankrupt. KD and KI are big money-makers. They get big crowds and more crowds more money.

Six Flags also has 10+ parks, has SFGAdv, SFGAm, and SFMM, which are also big money makers. Six Flags had lots of debt, and so does Cedar Fair. Six Flags went bankrupt from rapid expansion, and Cedar Fair is rapidly expanding.

[palmer]

Yet, Six Flags, and this may sound odd but, added too much parks. The sold Astroworld, Atlantis, Darien Lake, Geunga Lake, etc. And they lost SFNO due to Hurricane Katrina.

[nitrofan]

Yet, Six Flags, and this may sound odd but, added too much parks. The sold Astroworld, Atlantis, Darien Lake, Geunga Lake, etc. And they lost SFNO due to Hurricane Katrina.

That doesn't sound odd at all. I agree, they had too many parks. There were also several others that you missed.

[palmer]

That's the point. Cedar Fair would be smart not to expand too much.

[nitrofan]

I'm going to bring this topic back with some news that came out today:

(12/17/09) In another shocking bit of news, it seems Cedar Fair may have found that cash rich investment partner they were looking for shortly after swallowing up the Paramount Parks. According to this news article a group called Apollo Global Management has worked a deal to actually purchase Cedar Fair entirely, paying out their stock holders cash for each share, which will then allow the company to go Private… away from the endless and unfriendly waves of the no-longer stable stock market. Cedar Fair’s Board of Directors has already approved of the deal, so it comes down to the shareholders now to give the nod, which they likely will in exchange for the buy-out cash offer. Going private seems to be the new hot thing for theme parks I’m guessing, as we saw this happen earlier this year with Universal Studios Japan, along with the closing of the deal that saw Blackstone take home the former Busch Entertainment parks. Anyone know anything about this Apollo company? They’ve been off my radar, so I know nothing about them yet. I’m guessing this year may end up being very similar to the Blackstone buyout as well, where Apollo will become the owner, but keep all the key Cedar Fair management in place, or at least until Kinzel’s next retirement deadline which I believe is looming ahead at the end of the 2011 season.

http://www.screamscape.com/html/industry_news.htm#CedarFair

I really don't know enough about this group to know if this is good or bad, but I saw something like this coming ever since 3 very expensive expansions were announced for this year.