The encyclopedia · Finance & Accounting · Financial decision · 1987–2010
Kentucky Kingdom ran 23 years — Six Flags' bankruptcy turned the lights off
Opened in 1987, Kentucky Kingdom became Six Flags' Louisville park; on 4 February 2010 the bankrupt chain closed it when the state rejected its lease.
Kentucky Kingdom · Six Flags · 2010-02
What happened
Kentucky Kingdom opened on 23 May 1987 in Louisville, built by Kentucky Entertainment Limited, and was sold to Premier Parks in November 1997 for $64 million; when Premier bought Six Flags, the park became Six Flags Kentucky Kingdom in 1998.
Then Six Flags went bankrupt. Emerging from Chapter 11, the chain cut what it could not afford — and Kentucky Kingdom sat on land leased from the Kentucky State Fair Board rather than company-owned ground. The board rejected Six Flags' proposed amended lease, and on 4 February 2010 the company announced the park would close immediately.
The closure cost Louisville about 1,000 summer jobs and an estimated 10,000 hotel-room bookings a year. The park sat dark for four seasons until developer Ed Hart's Kentucky Kingdom Redevelopment Company pledged $120 million — $50 million to reopen it — and the gates opened again on 24 May 2014.
Why it happened
- Bankruptcy forced cuts: Six Flags kept the parks it owned land under and dropped the one paying rent to the state.
- The fair board rejected the amended lease — without state land on acceptable terms there was no park.
- A regional park without corporate priority: its closure was a line item in a national restructuring.
The lesson
Kentucky Kingdom survived 23 years but not its owner's bankruptcy: on leased state land it was the park Six Flags dropped — four dark seasons and 1,000 lost jobs before a $120M rescue reopened it.
Aftermath
The park reopened on 24 May 2014 under Ed Hart with $120 million pledged, and continues to operate.
Sources
- Wikipedia — Kentucky Kingdom (opened 23 May 1987 by Kentucky Entertainment Limited; operating rights sold to Premier Parks November 1997 for $64M; rebranded Six Flags Kentucky Kingdom 21 June 1998; closure announced 4 February 2010 after Six Flags' bankruptcy and the Kentucky State Fair Board rejecting the proposed amended lease; reopened 24 May 2014 under Ed Hart's Kentucky Kingdom Redevelopment Company with $120M pledged — $50M to reopen and $70M over the lease term)
- UPI, 5 February 2010 — Six Flags to close Kentucky Kingdom (Six Flags opted out of its lease with the state; substantial lease payment a significant hurdle as the park did not sit on company-owned land; tied to ongoing bankruptcy proceedings; closure cost about 1,000 summer jobs and an estimated 10,000 hotel room bookings a year; closure a judicial matter within the bankruptcy; Louisville Mayor Jerry Abramson hoped a deal could keep the park)
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