Hard Rock Park bankruptcy auction looms*
We're having a contest to guess the bankruptcy sale price. Submit your guess in the comments!]
On Monday, Hard Rock Park will go on the block, as the bankrupt Myrtle Beach, South Carolina theme park is auctioned off. There's a great story on the Myrtle Beach newspaper's website detailing just how the park failed. Ultimately, it was not gas prices, and it certainly wasn't a bad in-park experience.
No, ultimately, arrogance did in the Hard Rock Park, long before the park even opened. Park managers' refusal to advertise, to work with local hotels on promotion, to package and price the park aggressively -- all these failures to work with others left the park empty and its balance sheet a mess.
This is not news to Theme Park Insider readers, who had insight into HRP's arrogance years ago. But it enlightening to see such thorough documentation of the many mistakes that Hard Rock Park made on its way to bankruptcy.
As usual, businesses enter bankruptcy most often not because of adverse market conditions, but because their managers did not anticipate and plan for those adverse conditions.
Its still too bad!
Actually, there's a
Hard Rock has a chance alright...a golden one. Whoever wins this auction will get a brand new theme park for pennies on the dollar in one of the biggest tourist markets in the country. As for the highways Robert, Interstate 74 will be there soon enough.
I posted a review after our visit to HRP this summer. Items of note:
The auction winner will be announced on Thursday. The opening bid was $35 million, so I suspect that someone would bid if only to get the rides and move them, at that price.
I say pack up and move to Universal Orlando. Yeah, I know there is no area to build, but I think it would fare better in FL or CA
Heck, if I were one of those
$35 million opening bid? Damn, that's cheap.
Let's start a collection here and place our own bid? Rename it Theme Park Insider Park?
Ha - I got $200.
I'm in...got some Series EE Bonds that are nearing maturity. Been saving them for the kids...but you only get one chance in your life to own part of history. I'm good for 1k.
So I've just been clicking around at the Hard Rock Park site and notice that they still plan to re-open for the 2009 season. Also, "Our Job section is unavailable at this time".
Any updates on what the bidding has risen to, if it has risen at all?
Winner expected to be announced Thursday.
Let's see, what would a new owner need to make to recoup a $35 million purchase price?
According to what I've read, it was 10 percent to get in. That means that if the price is 52 mil, the buyer fronts 5.2 million. 5.2 million to reopen Hard Rock park. That could easily be covered, given a halfway decent payment structure is reached. The figures you have are based on paying back the whole cost of buying in one year. If the money is spread out over 5 to 10 years, than covering the cost of purchase won't be a problem. There won't be any improvement costs, unless the Hard Rock name is dropped. That would basically force ownership to change quite a bit.
At a $400 million startup cost, I would be shocked to see the park go for less than $100 mil. However, if the intention is to purchase the park and move the rides elsewhere, then the initial monetary outlay is only part of the expense. Moving the rides and setting them up in another park can't be cheap. Not to mention the cost of doing something with the wasted land you now own in SC once you move all the rides somewhere else.
2 cents. no actually im gonna go with 60 million. thats actually really low considering the amount it took to build....
Normally I would say 100 million, but given the state of the economy and the fact that banks are frozen solid right now, I think that many who would have bid 2 years ago won't bid now. Six Flags won't bid, Busch won't bid, Disney or Universal won't bid, Cedar Fair may bid small to get the rides, but still unlikely to go past minimum bid in that respect.
Would be interesting to see Blackstone do it. They have the money that would have been invtestetd in the Lego Land that was supposed to go in around Kansas City. Lego would be a strong family brand for Myrtle Beach and they could probably adapt the current rides to fit something Lego like. I know Lego would definitely make me consider another trip to Myrtle Beach sooner than I would have with a Hard Rock park.
Today's the big day. I'm gonna say $65 M.
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