Six Flags Inc. (NYSE: SIX) disclosed in an SEC filing today that unless it can restructure its debt, it may have to file for bankruptcy."Given the current negative conditions in the economy generally and the credit markets in particular, there is substantial uncertainty that we will be able to effect a refinancing of our debt on or prior to maturity or the PIERS prior to their mandatory redemption date," the company said.
The company's auditor, KPMG, said that there was "substantial doubt" about the company's ability to continue as a going concern.
What's surprising -- and somewhat appalling -- to me is that the company continues to recruit aggressively on college campuses: Why would you waste young peoples' time and energy when you know that you're probably going to have to lay off a ton of people soon -- and really aren't in a position to do much hiring.
The good news for consumers is that the company's desperate need for revenue combined with the recession is leading to some pretty good deals on tickets, as Jason Cochran recently reported on WalletPop.
What's surprising -- and somewhat appalling -- to me is that the company continues to recruit aggressively on college campuses: Why would you waste young peoples' time and energy when you know that you're probably going to have to lay off a ton of people soon -- and really aren't in a position to do much hiring.
The good news for consumers is that the company's desperate need for revenue combined with the recession is leading to some pretty good deals on tickets, as Jason Cochran recently reported on WalletPop.
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Reader Comments (Page 3 of 3)
3-15-2009 @ 1:53PM
Duane said...
Maybe they can change their name to
"11" Flags?
3-15-2009 @ 1:55PM
Chris Milburn said...
I see this with the comapny that I work for, Swift Transportation. With the economy in the shape it is in we do not have the freight to support the drivers that are currently employed. We have recruiters going out and recruiting new drivers yet we have drivers going bankrupt trying to hang with it and support their families. My question is this. If you know that the economy cannot support the employees that you have whyhire more. Put a moritorium on hiring. We have laid off close to 500 employees and they have taken away perks to driver trainers in an effort to save money but they still hire new drivers and expect the driver trainers to train these new drivers without any incentive to do so.
3-16-2009 @ 4:29PM
Frieda said...
If they supported Obama, we will bail them out too, if not, they will be bankrupt.
3-15-2009 @ 1:58PM
bet25zertx said...
This News article does not come as a surprize, I agree with the many blogs already posted regarding the ticket, parking and food prices, We live in Dallas and the six flags over texas park in Arlington is old and in need of a face lift, modernization and repair, the park appears dirty and not well maintained. The rides are dated and several of the rides are usually shut down for some sort of repair. Yet the entry prices still seem to climb. Just because your the only theme park in town does not mean youi should neglect your patrons with poor service. If Six flags should also fall into the fate of bankruptsy we will be sorry to see them go as they did in Houston.
3-15-2009 @ 1:59PM
S321Saint said...
First, its highly subjective when you talk about amusement parks. Many I've been in, I have not been impressed, simply because I dont do rides much, dont care for them. It would help alot (and probably save money) if they allow people to bring in their own food. Second, Samster.. you are of course delusional, bringing President Bush into this...the CEO salaries are what they are and have been since business was in business. If you are stupid enough to go that route, I"m sure you are one of the idiots who are actually impressed that article about Warren Buffett (a liberal multi billionaire) who "only" has a "$175,000 a year salary". It doesnt matter, because if his wife needs a couple million to pay for cancer treatment...he just gets it from his bank....whereas..that secretary who has to pay for her husband's cancer treatment has to have good insurance AND still pay for decades.
3-15-2009 @ 2:29PM
lsoxchance said...
There is something a little fishy about The Six Flags, I travel to a lot of places and I always pass a Six Flags and I have been to them even last year a few times and it was jammed packed.
Sounds like someone cant do the books or someone has done something really bad.....The workers only make $7 about $10 an hour and they hire a lot of high school or college kids. What is wrong with this big picture...
3-15-2009 @ 2:33PM
Robert Laurie said...
This is to cmpliment Marie,who told about the criminal acts by some scum, like who habitate 6 flags NJ. She is 100% right.PLease keep those scum infested parks open,so that those of us who don`t go to those s--t parks can enjoy our family outings.Six Flags NJ, One of the most crime infested parks in the US of A.
3-15-2009 @ 3:01PM
gzmnrob said...
If the greedy slobs that never provide QUALITY family entertainment with good music, and there is never an HONESTLY REASONABLE pricing discount for daters, and mid-income families, then as "Gordon Gecko erroneously stated, "Greed is good," (NOT)!!!!! If they build it as a reasonable and fairly priced day and night of fun, people will come back. if not, CYA!
3-17-2009 @ 12:32AM
Erin said...
YOU PEOPLE ARE SO UTTERLY BRAINWASHED BY THE MASS MEDIA, IT'S APPALLING. GET OFF THE FUCKING "C.E.O." BANDWAGON ALREADY. IT'S QUITE APPARENT THAT NONE OF YOU GENIUSES HAVE A CLUE WHAT YOU ARE TALKING ABOUT. IF YOU WERE A BUSINESS OWNER YOU WOULD KNOW THAT THE DEMOCRATS IN OUR GOVERNMENT TAX THE FUCK OUT OF BUSINESSES IN THIS FUCKED UP ANTI-PROGRESSIVE, ANTI-AMERICAN, ANTI-BUSINESS, AND ANTI-CAPITALIST COUNTRY. OUR POLITICIANS HAVE MADE IT ALMOST IMPOSSIBLE TO RUN A PROFITABLE AN ECONOMICALLY VIABLE BUSINESS, BECAUSE THEY TAX THE FUCK OUT OF US. YOU HAVE NO IDEA ALL THE CITY, COUNTY, STATE AND FEDERAL TAXES, FEE'S AND SUR-CHARGES THAT BUSINESSES ARE MANDATED TO PAY. IN ADDITION, THEY HAVE EXORBITANT OVER-HEAD COSTS, OFFICE EXPENSES, OUT-GOING EXPENSES, EQUIPMENT COSTS, INSURANCE COSTS, ADVERTISING COSTS, PROPERTY TAXES, UTILITY COSTS, PAYROLL AND FULL MEDICAL BENEFITS COSTS, ALL THE CITY, COUNTY, STATE AND FEDERAL SUR-CHARGES/TAXES/FEES, AND MANY MORE MANDATORY AND OPERATING COSTS ASSOCIATED WITH RUNNING A BUSINESS. THAT'S EXACTLY WHY MOST PEOPLE DON'T DO IT!!. YOU HAVE NO IDEA JUST HOW MUCH IT ENTAILS AND COSTS IN OUTGOING EXPENSES TO RUN A DAY TO DAY BUSINESS IN THIS COUNTRY, WHICH COME'S WITH A HEFTY PRICE TAG. WHY DON'T YOU PEOPLE DO SOME ACTUAL RESEARCH OR TAKE SOME BUSINESSES, ECONOMICS, ACCOUNTING, AND LEGAL COURSES, BEFORE YOU OPEN YOUR IGNORANT MOUTHS. SURE, THERE ARE A FEW BAD APPLES, BUT THAT HAPPENS IN MANY INSTANCES, FIELDS AND ORGANIZATION, AND GUESS WHAT??. EVEN IN POLITICS!!! SO BEFORE YOU GO GETTING ON YOUR HIGH HORSES, TRY STEPPING BACK A FEW PACES, AND PUT A LITTLE THOUGHT INTO SOMETHING BEFORE YOU OPEN YOUR MOUTH AND SPEAK ON A A SUBJECT OR ISSUE YOU KNOW LITTLE ABOUT. IT'S ENTIRELY THE LIBERAL, BIASED, AND CORRUPT MEDIA GLORIFIES THIS, PUTS AN UNFAIR AND PREJUDICE SPIN ON IT. THEY MAKE IT SEEM LIKE EVERY BUSINESS AND C.E.O. ENGAGES IN THESE KINDS OF UNETHICAL AND IMMORAL CORRUPT ACTS. THAT IS JUST ABSURD TO LUMP ALL BUSINESS TOGETHER AND BLAME ALL C.E.O'S FOR A COMPANY THAT IS HAVING FINANCIAL PROBLEMS OR IS GOING BANKRUPT, OR BLAME GOOD ONE'S FOR WHAT OTHER BAD ONES DO. BELIEVE ME, IT'S THE POLITICIANS AND ALL THEIR MANDATES, TAXES, FEE'S, SUR-CHARGES, RED TAPE, ETC., WHICH DESTROYS AND RUINS MANY, MANY GOOD BUSINESSES IN THIS NATION, NOT THE C.E.O'S, SO GIVE IT A FUCKING REST ALREADY WITH ALL THIS BLAME BULLSHIT. YOU WANT SOMEONE TO BLAME FOR THE MESS WE ARE NOW IN, BLAME THAT GUTTERSNIPE FRAUD OBAMA AND ALL THOSE WHO ARE RESPONSIBLE FOR GETTING HIM SELECTED, BECAUSE THIS NIT WIT IS DESTROYING OUR COUNTRY, ECONOMY, STOCK MARKET, JOBS, LIVELIHOODS, SAVINGS, ETC., FASTER THEN ANYONE IN OUR NATIONS HISTORY. AND THAT'S NO BULLSHIT. ALL OBAMA'S SUPPORTERS LAVISH PRAISE AND SUPPORT ON HIM, AND THEN THEY TURN AROUND AND WONDER WHY THEY EVERYTHING IS ONLY GETTING WORSE AND EVERYTHING IS GOING BELLY-UP NOW??. WELL, DUH ..... DON'T BLAME THE C.E.O.'S, PEOPLE, THANK OBAMA AND ALL HIS COHORTS, HIS SUPPORTERS AND THE MASS MEDIA FOR GETTING HIM SELECTED, AND ALL THE LOCAL, STATE AND FEDERAL DEMOCRAT LEGISLATORS FOR IT!!! BECAUSE THEY ARE THE ONE'S WHO ARE TO BLAME, NOT THE C.E.O'S. "DemsRDumbos", AND THEY ARE ANTI-BUSINESS.