Monday, February 9, 2009

The End of the Ride for Six Flags?

Thanks to my Facebook friend Thomas for sharing this link.
Most of these firms have limited cash for a rainy day, and a lot of debt, with large interest payments due over the next year. In ordinary times, it might not be so hard to refinance loans, or get new ones, to help keep the cash flowing. But in an acute credit crunch it's a different story, and at companies where sales are down and going lower, skittish lenders may refuse to grant any more credit. It's a terrible time to be cash-poor.
Some names that really caught my attention: Krispy Kreme, Trump Entertainment Resorts Holdings (you're fired!), Chrysler (oh yeah, big surprise there) and Six Flags. The one that really troubles me though is Sbarro. How are we going to live without mall pizza?! Come on people, let's get out there and buy more mall pizza!