Six Flags is facing a fresh challenge after an investor group that includes Travis Kelce pushed the theme park company to consider a possible sale. The move comes as the operator deals with heavier losses, fewer visitors and pressure on its stock price. Jana Partners, which joined Kelce and other investors in taking a stake in Six Flags, is now seeking action from the company’s board. The development marks a sharp turn from the group’s earlier effort to help strengthen the parks and improve their appeal to families.
Six Flags faces mounting financial pressure
Jana Partners reportedly contacted Six Flags’ board on Tuesday and asked it to bring in an investment bank to examine a potential sale. The request followed disappointment over the company’s latest financial results, which showed how difficult the current environment has become for the theme park operator.Six Flags posted a $203 million net loss for the second quarter, more than double the $100 million loss recorded during the same period a year earlier. Attendance also fell. The company reported 13.1 million guest visits, down about 7% from 14.2 million visits in the comparable period.The pressure has also reached the stock market. Six Flags shares traded at about $12.43 on Wednesday, roughly half their yearly peak of close to $25.Jana Partners and fellow investors, including Kelce, acquired a combined stake of around 9% in Six Flags last October. Their investment was valued at roughly $200 million at the time. Jana had previously focused on improving the company’s marketing and customer experience while also considering strategic options that could increase shareholder value.Six Flags said it remains focused on its investors and its wider business plans.“We have a history of engaging constructively with all of our shareholders and value their perspectives. We are focused on executing on our strategic priorities and are committed to maximizing shareholder value.”
Travis Kelce’s Six Flags investment faces another test
Kelce’s connection to Six Flags goes beyond his investment. The Kansas City Chiefs star has long had an attachment to Cedar Point in Ohio, a park he visited while growing up.When the investment was announced, Kelce shared his excitement about helping shape the company’s future.“Couldn’t pass up the opportunity to continue the tradition and make Cedar Point and Six Flags even more special for the next generation of families!”He added, “Excited to partner with JANA Partners as an investor in Six Flags. So crazy to even imagine this is real, but you gotta love it when life comes full circle.”The company is also dealing with legal challenges involving its X2 roller coaster at Six Flags Magic Mountain in California. Three people who say they suffered serious brain injuries after riding the attraction have filed lawsuits. The coaster, known for rotating seats and head-first drops, remains closed.Attorney Christopher Bulone said, “No ride like that should be allowed to exist,” according to CNN.Six Flags declined to comment on the pending lawsuits but confirmed to KABC that the ride “remains closed at this time.”