Merlin Entertainments

[Parm Pap]

big trouble

 

 

oh well wetsuits are gone, and cutbacks are in, put stuff in the bin, and then oh look, we win

[Project LC]

Merlin entertainments credit rating has been downgraded by S&P due to its growing debts and cash outflow with declining revenues. 

 

"Persistent high cash burn could lead to insufficient liquidity after 12 months, without further cash injection"

 

All in all thats a pretty poor outlook and it does make me wonder what it means for future investments at the parks. 

 

 

[JoshC.]

Article here: https://archive.is/20250820155054/https://www.bloomberg.com/news/articles/2025-08-20/theme-park-operator-merlin-s-bonds-slide-after-credit-downgrade

 

Realistically and practically, I don't really understand what much of this means or what we might see as a knock on effect. But it certainly doesn't sound positive.

[Inferno]

It’s quite a sad situation really.  Caused, in my opinion at least, by the previous leadership and their unsustainable obsession with only investing in something if it would guarantee a direct and immediate return.

 

Now across the business there are many expensive things to pay for, at the worst possible time given how many UK parks are struggling.

What a rubbish time for everyone working at Merlin.  I really hope they can turn it around soon for everyone’s sake.

[Project LC]

The situation is entirely caused by management loosing sight of how theme parks make money. 

 

The gate fee covers the running costs, the spend in the park makes the money. Management decided to start contracting things out and cutting on maintenance so short term spend looked good. Unfortunately this meant Merlin earns less per head as another company is skimming off the top and guests spend less when unhappy. They lost sight of the absolute basics and now there is very little room for course correction.