I don't want the park to close, but I can understand 100% why it's possible, even likely. The place really is pretty dire, with a single good ride and some pretty dreadful areas. It's close to the superior family park of Gullivers, and the superior ride park of Blackpool. It needs to do everything so much better, but doesn't. There's no money, and without the investment, there never will be (even with it, it's a tough market), so the place is between a rock and hard place.
As for the accident, it's pretty shocking. I seem to remember it being one of those rides where you get an OTSR, then a cage that locks it all into place. So it seems like one of those odd accidents where there's a lot of safety devices in place. I do have a video of Stone Cold getting out under the restraints of a ride at Camelot though, so it's possible if you're determined (not saying the kid deliberately got out of the restraints).