Six Flags Plans Park Sales Amid $5B Debt and Safety Lawsuits
- Six Flags is selling additional parks to manage $5 billion in debt.
- The company's stock has declined 34% year-to-date.
- A fatal accident at Six Flags Over Georgia has prompted safety upgrades.
- Multiple lawsuits allege brain injuries occurred on the X2 roller coaster.
- Six Flags reported a $366.1 million loss in the third quarter.
Six Flags Entertainment is planning to sell additional theme parks to address a $5 billion debt load. The company is exploring these divestments following a fatal accident at its Georgia location.
During an earnings call, Chief Executive Officer John Reilly said the company is "optimizing the portfolio". Reilly noted, "We carry more debt than we want".
Industry tracker Green Tagged reports that nearly $1.5 billion of the $5 billion total debt carries variable interest rates.
Company stock drops 34% year-to-date amid safety concerns
Six Flags Entertainment, listed on the New York Stock Exchange under the ticker symbol FUN, has seen its stock price drop 34% year-to-date.
The company’s stock performance has suffered due to a fatal accident in Georgia and ongoing lawsuits regarding brain injuries. Six Flags warned that the full impact of the October accident has not yet been felt.
Moody’s and S&P Global have downgraded the company because of mounting debt and weak earnings.
Fatal accident at Six Flags Over Georgia leads to safety changes
On Oct. Witnesses reported the victim struck parts of the ride multiple times before he fell onto the roof of a nearby attraction.
Following the incident, Six Flags announced plans to install seat belts on the roller coaster involved in the death. The company also announced major safety changes for its roller coasters after the rider was ejected from the 200-foot-tall ride.
Lawsuits allege brain injuries on X2 roller coaster
Attorneys for the plaintiffs claim that more than 100 riders suffered brain injuries on the X2 attraction over a two-year period.
The company closed the X2 roller coaster in July, though a spokesperson did not link the closure to the alleged injuries.
Third-quarter financial results show $366.1 million loss
Six Flags reported a loss of $366.1 million and an 11% decline in revenue in the third quarter. Entertainment Weekly reported the loss at nearly $400 million and noted a dip in attendance following the fatal Georgia roller coaster incident. The Wall Street Journal reported that financial losses have narrowed, though the company expects the recent accident to weigh on its results.
Company portfolio includes 20 amusement parks and 14 water parks
Cedar Fair Entertainment Company owns the parent entity.
CEO John Reilly expects accident fallout to be temporary
John Reilly, the chief executive officer of Six Flags, expects the negative impact from recent safety incidents to be temporary. He predicts that the fallout from the fatal roller coaster accident will persist for months rather than years.
The company is fully cooperating with the investigation into the death on the roller coaster in Georgia, according to Reilly.
History of park acquisitions and current divestment strategy
Six Flags has a history of expansion that includes the acquisition of Reino Aventura on January 1, 1999, and La Ronde on May 1, 2001.
The company sold seven parks with lagging attendance and sales in 2026. It is currently in the process of selling another park in Maryland.
Frequently Asked Questions
- Six Flags plans to sell more parks as $5-billion debt, fatal Georgia accident and brain injury lawsuits pummel stock (finance.yahoo.com)
- Six Flags selling parks to cover $5B debt (moneywise.com)
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- Six Flags (Wikipedia — background) (en.wikipedia.org)
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