Controversial theme park owner files for Chapter 11 bankruptcy | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Theme parks rarely file for bankruptcy, which is the way park guests like it.

It’s been five years since the last major theme park or amusement park owner filed for bankruptcy.

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In April 2020, Apex Parks Group, which operated 10 amusement parks and two water parks, filed for Chapter 11 bankruptcy to sell its assets to a lender group led by Cerberus Business Finance.

Over 10 years before that bankruptcy, huge theme park operator Six Flags Inc. in June 2009 filed for Chapter 11 bankruptcy, seeking to reduce its $2.7 billion of debt by about $1.8 billion. The company emerged in May 2010 as Six Flags Entertainment under new ownership with about $1 billion in debt.

More recently, a Canadian maker of popular theme park rides, Dynamic Attractions, which built Disney’s Soarin’ and Universal Studios’ Harry Potter and the Forbidden Journey, in May 2023 filed for Chapter 15 bankruptcy seeking recognition of its foreign main proceeding.

Finally, The Dolphin Company, which operates 30 marine theme parks in eight countries, including Seaquarium and Gulf World in Florida, filed for Chapter 11 bankruptcy protection on March 31 to pursue a restructuring of its capital structure to improve its financial position.

The debtor and 14 affiliates filed their petition in the U.S. Bankruptcy Court for the District of Delaware to address short-term liquidity needs and resolve financial challenges. The company sought to ensure the continuation of its operations, placing a strong emphasis on animal safety and well-being, the company said in a statement.

The debtor listed $100 million to $500 million in assets and liabilities in its petition.

The lead debtor in the case is Leisure Investment Holdings LLC. Its owner TDC Leisure Holdings LLC of Cancun, Mexico, did not file for bankruptcy.

The Miami Seaquarium reportedly faced an eviction over poor conditions. (Miami Herald/Tribune News Service via Getty Images)

Miami Herald/Getty Images

The Dolphin Company files for bankruptcy

The Dolphin Company’s marine parks Gulf World in Panama City Beach, Fla., and Seaquarium in Miami are entangled in controversy as local, state, and federal agencies were investigating four dolphin deaths at Gulf World since October 2024, and Seaquarium is facing eviction for poor conditions, WJHG-TV reported.

All litigation against the debtor is subject to an automatic stay while the bankruptcy case proceeds.

More bankruptcies:

The debtor said it expects the bankruptcy restructuring to enhance business operations, animal welfare, guest experiences, employment engagement, and vendor relationships.

“This restructuring will best enable the company to restructure under Chapter 11, a well-recognized court-approved process, while improving the welfare of our animals, ensuring a seamless experience for employees, and delivering an enhanced guest experience,” Independent Director Steven Strom of Odinbrook Global Advisors said in the statement.

“By taking this proactive step, we are ensuring that The Dolphin Company can continue to offer world-class attractions and immersive experiences to the millions of guests who visit our parks each year,” Strom said.

The company recently replaced its leadership with Strom and Chief Restructuring Officer Robert Wagstaff. The new management has committed to collaborating with state, federal, and international authorities in the investigations into the related health and safety of the parks’ animals.

The debtor will also seek approval of up to $8 million in debtor-in-possession financing to fund ongoing operations and the bankruptcy case, according to its petition.