Six Flags Faces Bankruptcy Fears After $500M Debt And Park Closures

We’re not sure what more of a comment about discretionary spending one would need…

Six Flags, less than a year removed from its merger with Cedar Fair, is drowning in debt, closing parks, and facing warnings of bankruptcy, according to The Sun.

The company has racked up $500 million in debt, seen revenue fall by $100 million in Q2, attendance drop 9%, and season pass sales decline 8%. Two parks have already been shut down, with California’s Great America set to close in 2027.

“The whole company needs to be reimagined,” said Dennis Speigel of International Theme Park Services, who warned “bankruptcy is not out of the question.”

Citi analyst James Hardiman agreed, saying “everything should be on the table as we think about asset sales,” though flagship parks like Cedar Point are expected to survive.

The July 2024 merger was billed as a growth engine, with executives projecting 6% attendance gains in 2025. Instead, attendance fell 9%. “It’s about the biggest miss I’ve ever seen in the theme park industry versus expectations,” Hardiman said.

The Sun writes that leadership turmoil has added to the crisis. CEO Richard Zimmerman announced he will step down at year’s end, a move Hardiman called “odd,” especially mid-season. Chairman Selim Bassoul remains in charge.

Six Flags blames poor weather for disrupting nearly 50 operating days, but critics say demand for multi-park passes was overstated. Controversial new fees for haunted houses at Halloween events have further angered passholders.

Stock prices have plunged to $23.84, less than half their pre-merger value. Two law firms are already exploring potential securities-fraud lawsuits.

“If I were running the company, there are 10 to 12 parks I would keep, pay off debt and start over,” said Speigel. “I wouldn’t be surprised if you see the company on the precipice of bankruptcy to get that debt off the books.”