Goodbye Hard Rock Park? Maybe not - New Buyer update page 6

[ECG]

We were making final preparations for Aidan's birthday trip to HRP and went to double-check everything when we found this:
http://www.hardrockpark.com/

Why did they close unannounced (we were looking at the schedule on the website just last night)? Because they filed for bankruptcy today. No word on refunds for season pass holders. At least they intend to re-open next year.

Now I have to cancel my hotel reservations. Guess we'll just have to do BGE & KD.

Here is the Q&A from the website:
http://www.hardrockpark.com/closinginformation.cfm

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.

 

[CedarPoint6]

That's very sad. I hope they can reorganize and get things going soon. I've got a more personal connection to this park then any other place, so I'm really hoping they'll pull through for 09.


Just to let everyone know, I'll be trying to e-mail Jon Binkowski in the next few days to clarify any questions you might have, so post any questions here and I can try to address them. Thanks.

 

[Error]

Well, this is bad. I did see it coming, though (see my article)

It's sad to see parks going through such trouble. I was also considering working at Hard Rock Park next summer, too. Doesn't seem like a good idea anymore...

 

[wash]

That title scared the **** out of me!
Hopefully things turn around for them.
I've got to get down there next year just in case though...

 

[Antinos]

They chose the perfect timing to build the park. At least they closed at the end of the season. I hope they turn around as well.

Does anybody know if they're calling our economy a depression yet?(terribly worded)

 

[ECG]

What do you mean 'At least they closed at the end of the season'?
They were supposed to be open through November. We were going this weekend, so I don't think you can call shutting down now 'the end of the season'.
Maybe you meant to say 'At least they made it through the summer' without closing.

 

[Antinos]

^Yes, that's exactly what I meant. From the rest you can guess that the whole post just terribly worded.

 

[Error]

Does anybody know if they're calling our economy a depression yet?(terribly worded)

It's being discussed in Congress right now. Most of the government's money (about $4 billion) is funding the war in Iraq. They're thinking of putting $750 million in wall street to keep it above water.

As I see it, we're screwed worse then the 1920's.

 

[madhjsp]

Well, balls. Somehow I lost my LZ-TR shirt in the laundry and I was planning on getting a new one later this year. Now I gotta wait till next spring, and that's if this restructuring thing works out.

Actually, this really is depressing news to me, I had a wonderful time there and I thought the staff was great. The idea has a lot of merit and I think it's something that can be successful if they advertise for it more and keep the admission price reasonable.

It's strange, I'm the only person I know who's been there and sometimes when I tell people about it or they see my shirt, they'll say they went to Myrtle this summer and A) they didn't even know it was there, or B) It was too expensive for them to go. I'm beginning to wonder if that was really the best location? There are so many other things going on there that HRP is stuck in a huge competition for people's time, and most of those activities are cheaper than a day at HRP, so people choose to do those.
It seems like most parks are located in places where they are the sole local attraction... the park is the destination. Heck, when WDW was being built, nobody had even heard of Orlando, Disney put it there because it was in Florida and the real estate was cheap... now look at what a city Orlando has become! All because of the amusement parks.
Same goes for BGE. Williamsburg, VA is not a real happening place... other than that park, all they really have is a little college, an A-B brewery, and a big historical background. I think that actually works to BGE's advantage, since people travel to Williamsburg just to go there.

Anyway, not saying HRP is the next Disney World or Busch Gardens, but I think it might have been better to build it somewhere else. Some other beach in South Carolina probably would have worked as well. For one, the startup cost would probably be a lot lower, and two, they would be the supreme destination in the area.

I guess that's all irrelevant, though, since they can't just up and move the whole thing. Point is, the Disney brand and the Busch brand helped WDW and BGE become popular parks in initially unknown locations, and I think the Hard Rock Cafe brand has enough value to do the same if they advertise effectively outside Myrtle Beach.

 

[Snoo]

That was quite the shock.. and the title was a bit misleading.

But.. hopefully, like they intend to, the park returns next season stronger.

 

[LiveForTheLaunch]

Damn, I could never imagine this park filing for bankruptcy; it seems like such a nice park and it's in a decent location as well! It's not that close to other things either, so I'm kinda confused.

I'm glad it's not done for good though.

 

[ECG]

That was quite the shock.. and the title was a bit misleading.

I didn't notice that, so I changed it.

 

[Pokemaniac]

As I see it, we're screwed worse then the 1920's

The economy bloomed in the 1920s. It wasn't before '29 that things began to get bad...

Anyway, I don't think HRP will be remembered as a financial flop. Given the worldwide economic situation, any business will expect some trouble. Perhaps they'll even do this again next year, but I think it will get a solid reputation when time comes.

 

[Lofty]

When I read the title, I thought OH MY GAWD! Then reading a little bit more into it, This could be for the better, anyone else agree?

 

[Mark]

Christ, that has to be the quickest first season fail ever surely?

Let's hope they get themselves all ironed out and sorted ready for next year ay?

 

[marc]

I was shocked when I heard about it, I do hope that can turn it around.

It did not help them that a few other coaster sites took a swipe at them every chance they got.

I dont know how people can slag off this park over theming and praise others like Magic Mountain.

 

[Steven]

Holy ****!

This is one of the park I had high hope for. Next year I better visit this just in case it happens in 09 and they shut down forever.

 

[Ben]

Wow, let me just put on my shocked face...


*gasp*

 

[Anonymous]

What the hell?! It only just opened! Still though it's quite a shame, it did look like it was going somewhere, but apparently not...

- Meatloaf x

 

[Emmett]

Just like any other business many fail in their first year. HRP unfortunately opened during the same year as all the financial problems /credit crunch occurred and this would have affected peoples spending and led to lower attendances.

Hopefully during this closure period they can restructure the operating of the park and it will be able to open in 2009. It would be such a shame not to see this park open again as they could certainly grow the park over time and it would be such a shame to see Led Zeppelin sitting empty.