Six Flags plans to sell more parks as $5-billion debt, fatal Georgia accident and brain injury lawsuits take the stock for a ride

Seven parks with lagging sales and attendance have already been sold this year, and the company is in the process of offloading an additional one located in Maryland, the Wall Street Journal reports.

Six Flags company lost $366.1 million in the third quarter and revenue fell 11%. That’s actually a bit better than Wall Street’s expectations. Although the stock saw a bump on the back of the earnings news, overall it has cratered; losing 34% of its value year-to-date. However, the company warns that the effects of a fatal accident in Georgia last month have yet to be fully felt.

A tragedy in Georgia

Six Flags has been reeling since a fatal roller coaster accident in Georgia raised fresh safety concerns, adding to the company’s recent troubles.

On Oct. 12, a man died after he was ejected from the Goliath roller coaster at Six Flags Over Georgia, according to eyewitness accounts reported by Atlanta NBC affiliate 11Alive.

Witnesses said the man struck parts of the ride several times before falling onto the roof of a nearby attraction. Other riders were left stranded on a separate coaster train while Cobb County Police confirmed the death and reported additional injuries.

Six Flags temporarily closed similar rides across its parks as authorities investigated the accident. An investigation is ongoing, which the company says it is cooperating with. It has already announced plans for safety upgrades.

Six Flags’ annus horribilis

The incident came at an especially difficult time for Six Flags, which is already struggling with financial and legal problems. Shares were already struggling, losing more than half their value over the previous 12 months.

The company’s financial troubles have persisted since its July 2024 merger with Cedar Fair, which brought major amusement parks such as Cedar Point, Knott’s Berry Farm and Kings Island under the Six Flags umbrella. The combined company is now North America’s largest regional amusement park operator, with 20 amusement parks, 14 water parks and nine resorts.

Six Flags is saddled with heavy debt, reporting $5 billion in total borrowings in its latest earnings. Nearly $1.5 billion carries variable interest rates, according to amusement park industry tracker Green Tagged, leaving the company exposed to higher borrowing costs if benchmark rates rise.

Credit rating agencies have also raised concerns about Six Flags’ finances, with Moody’s and S&P Global downgrading the company over weak earnings and mounting debt challenges.

The fatal accident in Georgia comes as Six Flags is already facing lawsuits over alleged brain injuries linked to another one of its roller coasters.

As NBC News reported, three people sued Six Flags after allegedly suffering “catastrophic” brain injuries on the X2 roller coaster at Six Flags Magic Mountain in California. Attorneys representing the plaintiffs claim more than 100 other riders suffered brain injuries on the attraction over a two-year period.