As Six Flags navigates significant financial challenges, the company has stated unequivocally that it does not intend to sell two of its most important properties: Knott’s Berry Farm and Six Flags Magic Mountain. During a recent earnings call, Chief Financial Officer Brian Witherow emphasized that these parks play a crucial role in the long-term growth of the amusement park chain.
The announcement comes as Six Flags grapples with a declining stock price and a reported drop in revenues. Witherow noted that both Knott’s Berry Farm in Buena Park, California, and Six Flags Magic Mountain in Valencia, California, are integral to the company’s strategy moving forward. “The parks with high property values in Southern California and Toronto are critical to the long-term growth of the business,” he stated.
Despite the commitment to these flagship parks, Six Flags is actively seeking to divest underperforming assets. The company aims to raise funds to alleviate its substantial debt, which currently stands at nearly $5 billion. To that end, Six Flags plans to sell properties that do not align with its core operations. Earlier this month, the company announced the permanent closure of Six Flags America in Maryland, which will be put on the market.
Strategic Focus on Core Parks
The decision to retain Knott’s Berry Farm and Six Flags Magic Mountain underscores the parks’ importance within the broader portfolio. Witherow clarified that selling these locations “would not be something, at least where we sit today, that we would be interested in pursuing.” The company is also preparing for the eventual closure of California’s Great America in Santa Clara, although the exact timeline for this transition remains uncertain.
Six Flags’ financial troubles have intensified following the merger with Cedar Fair in 2024, a deal valued at $8 billion that created a dominant force in the North American amusement park industry. Recently, the company reported a 2% decline in net revenue for the third quarter, which contributed to a drop in stock value, hitting a 52-week low.
Leadership Changes and Future Directions
In light of these challenges, Six Flags will soon welcome John Reilly as its new Chief Executive Officer. Reilly, who assumes his position on December 8, 2023, brings extensive experience from previous roles at Palace Entertainment and SeaWorld Parks and Entertainment. His leadership will be crucial as the company navigates these turbulent waters and seeks to revitalize its offerings.
As Six Flags adjusts its strategy, the focus remains on enhancing the appeal of its core parks. With Knott’s Berry Farm maintaining strong attendance numbers and plans for new attractions at Six Flags Magic Mountain, the company aims to stabilize its financial footing while engaging with its loyal customer base.
This ongoing commitment to its flagship parks highlights Six Flags’ determination to emerge from its current difficulties and position itself for future growth in the competitive amusement park landscape.
