Experienced management for venues and attractions where operations can't simply stop.
Entertainment businesses face a distinct challenge in distress: the lights have to stay on. Customers are booked, employees are scheduled, and shutting down prematurely destroys the going-concern value that drives recovery. Lighthouse has managed entertainment operations through receivership, bankruptcy, and sale processes across the Midwest.
An entertainment venue in distress is still serving customers, managing staff, and honoring commitments every day. We provide the operational and financial leadership to keep the business running while the restructuring or sale process unfolds to protect value that disappears the moment the doors close.
Appointed by the bankruptcy court to manage and sell the business operations of Underwater World at Mall of America.
Challenge: The large-scale aquarium attraction maintained strong attendance levels but faced liquidity restraints, high fixed operating costs, and infrastructure challenges–including aging equipment and facility issues critical to maintaining animal habitats.
The Solve: Lighthouse eliminated $7.8 million of debt from Underwater World’s balance sheet through a Chapter 11 filing. Working with a Steering Committee, Lighthouse resolved signage, entrance visibility and operational flexibility issues in lease negotiations with Mall of America, reducing annual operating expenses by $1.3 million. Concurrently, Lighthouse prepared detailed financial and operational due diligence materials, marketed the business to qualified buyers, and managed a competitive sale process.
The Outcome: Successful sale of business operations, resulting in 32.8% cumulative recovery on claims held by Senior Bondholders. The engagement preserved the value of a complex, operating entertainment asset, while positioning the attraction for continued success under new ownership.
How we manage entertainment engagements.
1. Operational Takeover: We step into day-to-day management to oversee staff, vendors, customer commitments, and facility operations while simultaneously assessing the financial position.
2. Revenue & Cost Stabilization: We identify immediate opportunities to preserve revenue, reduce operating costs, and extend the runway while strategic options are evaluated.
3. Going-Concern Valuation: We assess the business as an operating entity, evaluating brand value, customer base, lease terms, and revenue potential to determine whether a sale as a going concern is viable.
4. Sale or Wind-Down Execution: We manage the marketing, negotiation, and closing of the sale. If a sale isn't feasible, we facilitate an orderly wind-down that maximizes recovery from real estate, equipment, and other assets.
The best outcomes start with early action.
The sooner we're at the table, the more options remain available. Reach out for a confidential conversation with our team