The Hornblower Group, which operates Alcatraz city cruise tours, filed for bankruptcy on Wednesday following the economic disruption caused by the coronavirus pandemic.
Hornblower Group says it carries an average of 1.7 million guests a year on Alcatraz cruises. Website.
Alcatraz Island was once a military fortress turned into an infamous prison that housed famous prisoners such as Al Capone and Robert Stroud, the “Birdman of Alcatraz.” According to Alcatraz City Cruises, the prison closed in the 1960s. Website.
Q7. Many visitors to Alcatraz are surprised to learn about the island's history beyond its infamous federal penitentiary days. What is the surprising story you learned at the park?#Park Chat
📷:NPS pic.twitter.com/Ch7sKD83wz— Alcatraz Island (@AlcatrazIsland) October 27, 2022
In 2019, Hornblower Group was awarded a 15-year National Park Service contract to operate the Alcatraz Island Route. san francisco standard report.
In a sworn statement regarding the Chapter 11 bankruptcy filing, Chief Restructuring Officer Jonathan Hickman cited rising interest rates and hardships caused by the coronavirus pandemic as reasons for the filing. wall street journal report. The company's annual interest expense reportedly increased to $115 million from $62 million in 2021.
The company said in court documents that its asset-to-liability ratio was between $1 billion and $1.2 billion, according to the San Francisco paper.Cisco Chronicler. (Related: Major airlines consider refinancing options following Biden administration lawsuit)
According to the media, Hickman said in his statement that the company's revenue decreased from $690 million in 2019 to $175 million in 2020 due to COVID-19 restrictions. Ta.
As part of a restructuring plan, investment firm Strategic Value Partners will acquire a majority stake in the company, adding $121 million in capital and reducing debt to $720 million, the Standard reported. It is said that they plan to reduce the amount by US$.
According to the newspaper, the company expects the bankruptcy period to last about four months.
Hornblower Group CEO Kevin Rabbitt said the company's Bay Area operations would not be affected by the bankruptcy, according to the newspaper.
“We look forward to continuing to welcome guests to our Alcatraz City Cruises and City Cruises SF dining operations,” Rabbitt said, according to the Standard.
