Theme Park Discussion / Hard Rock Park files for Bankruptcy.

Not even a year after it's opening, Hard Rock Park, in Myrtle Beach, has closed it's doors early and filed for Bankruptcy.

http://www.hardrockpark.com/

Q: Why is HRP Holdings doing this reorganization? What do you hope to accomplish with this?



A: We took this step because, after thorough consultation with our investors and advisors, we determined that it would be in the long-term interest of the company as well as our employees, customers and other stakeholders.

This process will give HRP Holdings the opportunity to restructure its balance sheet and reduce its debt to ensure the future health and sustainability of the company.

As you may be aware, the unprecedented volatility of the global financial markets and rising fuel costs have had a significant impact on tourism worldwide. Specifically, tourism in Myrtle Beach is down as a whole.

Consumers continue to postpone or scale back their travel plans.
Theme parks nationwide are seeing attendance flat or down this year (Source: Leisure and Recreational Concepts Inc.)
Additionally, the frozen credit markets severely limited our ability to line up loans or the other planned financial resources we needed to execute our summer marketing plan and adequately promote the Park.

By taking these actions, we intend to re-open in 2009 with a much stronger financial position.



Q: Is Hard Rock Park going out of business?


A: Hard Rock Park is not going out of business. In conjunction with the filing, the Park will close for the season to allow management to focus on the restructuring efforts. Following the completion of this process, Hard Rock Park intends to re-open for the 2009 season with enhanced financial flexibility.

Chapter 11 is a common process that allows companies to restore their financial health so they can continue as stronger business. Many other well known companies such as Chiquita, Delta Airlines, Macy’s and Continental Airlines have emerged from this process as stronger, successful companies.



Q: I know you are shutting down for the season, but when will the Park open again?


A: Following the completion of the restructuring process, Hard Rock Park intends to re-open for the 2009 season next spring.



Q: Will there be any further workforce reductions as a result of the Chapter 11 filing?


A: At this time, we are not anticipating any significant changes in our non-seasonal employment numbers in connection with this announcement. Following the completion of the restructuring process, Hard Rock Park intends to re-open for the 2009 season and we invite all seasonal employees to apply for positions within the Park next year.



Q: Will employee paychecks or benefits be affected by the Chapter 11 filing?


A: All non-seasonal employees will continue to receive their paycheck on a normal schedule, and medical, dental and other benefits will continue uninterrupted.



Q: What happens to season passes? Can I get a refund?


A: In conjunction with the filing, Hard Rock Park will close for the season to allow management to focus on the restructuring process. Following the completion of this process, Hard Rock Park intends to re-open for the 2009 season.

Whether the Park will be able to provide refunds or extensions for Annual Pass holders will be determined by the Bankruptcy Court.



Q: What is Chapter 11?


A: Chapter 11 is a legal process that allows a company to continue to operate its business while it restructures its debts in an organized, Court-supervised setting. Chapter 11 refers to the portion of the U.S. Bankruptcy Code that governs Bankruptcy Court-supervised corporate reorganizations.



Q: How do I get additional information?


A: If you have additional questions or concerns we invite you to call our customer service line at (843) 646-6450.

Thoughts?

I can't help but seriously laugh at this... horrible park theme in a horrible location.

There was an article in the local paper this past week how AZ is trying to get a theme park built.... for like the billionth time. It'll never work... and the day it does is the day Knott's Arizona Adventure's gets released, lol.

Edited by The Beta Factor, 25 September 2008 - 03:18 PM.

i was just reading about this on screamscape. it said they were projecting 3 million visitors, but only got half of that. i gotta say outta all the pictures ive seen of the place, its never looked busy. it probably would have worked better in a bigger metropolitan area.

It's disappointing. Like I've said in my previous topics, I'd become friends with the CEO and some of the other management people over there. They've certainly got the skill and previous experience to make this work, but there's a few factors that didn't help things:
-Location. Not Myrtle Beach... that in itself is a perfect place for a park. The problem is it's location inland several miles and behind some existing buildings. It's out of the way, simply.
-Advertising. HRP advertised around Myrtle Beach and did a few advertisements in some local cities. They needed to do more.
-First year. It's hard for a park to get the word out and immediately get a lot of visitors. Myrtle Beach gets 14 to 17 million visitors in the summer season. I believe that if advertising was better, they could do a lot better.
-Price. People see the price as expensive (although it's not a bad deal) and that doesn't help in relation to the next point.
-Economy. It's been a bad year for gas and economy in general. There weren't nearly as many people traveling this year.
-Storms. Two hurricanes on a couple of key weekends didn't help.

There's more, sure, but I think that's the major stuff. It's a shame because it's a fantastic park (8 out of 33 on my list) and could be really successful, I think. Some of the best details of any place. I can only hope they restructure soon and can get things going for 09.

I find it funny but sad. It sounds to me like they jumped the gun and expected to start rolling in the dough. From what I've learned from studying real parks, coasters, and playing RCT, it just doesn't work that way.

NOTE: I plan to get into coaster design after college, just so you know.

good idea

ill conceived plans

and the economy does suck

AND...I still contend their prices were too high