Six Flags CFO denies plans to sell Knott’s Berry Farm or Magic Mountain

Six Flags has no intentions of divesting Knott’s Berry Farm or Six Flags Magic Mountain despite facing financial challenges that have led to considerations of offloading underperforming parks in the wake of declining revenues and a slide in stock prices.

During a recent financial call, Six Flags CFO Brian Witherow emphasized the pivotal role Knott’s Berry Farm and Six Flags Magic Mountain play in the continued growth of the theme park chain. According to Witherow, the parks located in high-value regions like Southern California and Toronto are foundational to the long-term prosperity of the company.

Notably, potential transactions involving Knott’s Berry Farm, Six Flags Magic Mountain, or Canada’s Wonderland near Toronto are currently off the table as per Witherow’s statements. The company’s current focus is on divesting “non-core” parks to generate funds for reducing the significant debt load amounting to nearly $5 billion following a recent financial quarter marked by substantial losses.

In conjunction with the decision to sell underperforming parks, Six Flags is poised to offload the now-closed Six Flags America property in Maryland. The phased closure of California’s Great America in Santa Clara is also on the horizon, although the precise timeline is yet to be determined.

In a pivotal move, Six Flags and competitor Cedar Fair completed a merger in 2024 valued at $8 billion, creating a dominant force in the North American amusement park sector. However, the conglomerate faced adversity as the Six Flags stock witnessed a dip to a one-year low following a 2% decline in net revenue reported in the third quarter of the year.

The incoming Chief Executive Officer of Six Flags, John Reilly, is expected to commence his duties on December 8. Boasting an illustrious career in the theme park industry, Reilly previously held leadership roles at Palace Entertainment and SeaWorld Parks and Entertainment, where he served as interim CEO and president of SeaWorld San Diego.

In summary, Six Flags’ commitment to retaining Knott’s Berry Farm and Six Flags Magic Mountain underscores the strategic importance of these assets in propelling long-term growth. Despite facing financial headwinds, the company remains focused on financial restructuring through the sale of non-core assets while navigating the evolving landscape of the amusement park market.