Six Flags Entertainment Corporation has reaffirmed that it will not sell its flagship properties, Knott’s Berry Farm and Six Flags Magic Mountain, despite ongoing financial challenges. During an earnings call earlier this month, Brian Witherow, the Chief Financial Officer of Six Flags, emphasized the importance of these parks for the company’s long-term growth strategy.
Witherow stated that the parks located in Southern California and Toronto are vital assets. He clarified that selling either Knott’s Berry Farm in Buena Park or Six Flags Magic Mountain in Valencia is not on the table at this time. “The sale of these properties would not be something, at least where we sit today, that we would be interested in pursuing,” Witherow said.
Financial Landscape and Strategic Decisions
The company is currently facing significant financial pressure, reporting a substantial loss in its latest quarterly earnings. With declining revenues and a stock price that has recently hit a 52-week low, Six Flags plans to divest underperforming “non-core” parks to alleviate part of its nearly $5 billion debt. Among the parks slated for sale is Six Flags America in Maryland, which permanently closed earlier this month. Additionally, California’s Great America in Santa Clara is expected to close in the coming years, although the exact date has not yet been determined.
The financial difficulties follow the $8 billion merger with Cedar Fair in 2024, a move that aimed to create a dominant presence in the North American amusement park market. Witherow’s comments indicate a commitment to maintaining key locations while restructuring the company’s portfolio.
Leadership Changes and Future Outlook
In light of the ongoing challenges, Six Flags is set to welcome a new Chief Executive Officer, John Reilly, on December 8, 2023. Reilly is a seasoned leader in the theme park industry, with previous roles as CEO of Palace Entertainment and interim CEO at SeaWorld Parks and Entertainment. His extensive experience may bring fresh ideas to navigate the company through its current challenges.
Despite the financial hurdles, attendance at Knott’s Berry Farm has remained strong, contrasting with a decline in visitors at Universal Studios and stable numbers at Disneyland. This suggests that while the broader market may be struggling, certain parks are still drawing significant crowds.
As Six Flags navigates this complex landscape, the focus will likely remain on leveraging its key assets while adjusting its strategy to improve overall performance. The coming months will be critical as the company works to stabilize its financial position and enhance its brand presence in the competitive amusement park sector.
