Hornblower cruises into bankruptcy protection
Niagara Falls officials say it’s ‘business as usual’ for the tour boat operator as it undergoes a court-supervised restructuring south of the border. Opening day for Voyage to the Falls is scheduled for March 28
Hornblower Group, the San Francisco-based company that operates the Voyage to the Falls tour of the Canadian Horseshoe Falls, has filed for bankruptcy protection in the U.S.
The company was in a Houston courtroom on Feb. 21, stating it could not manage about $1.2 billion of debt. A court-ordered announcement of the bankruptcy proceedings appeared in the Globe & Mail on Friday.
David Adames, chief executive officer of Niagara Parks Commission, said Hornblower informed Niagara Parks before the filing.
“They assured Niagara Parks it will be business as usual,” Adames said. “Hornblower Cruises also put out a media release announcing the start of the sailing season 2024 on March 28 in addition to the opening of their other Canadian operations in Thousand Islands and Toronto.
“Right now, we’re looking forward to another strong season.”
Kevin Rabbitt, CEO of Hornblower Group, said the company is taking steps to transition its ownership and strengthen its financial foundation.
“They will have no impact on the land and water-based experiences and transportation services we provide globally,” Rabbitt said in a statement emailed to The Standard.
“All of our operations are running normally, and we are continuing to serve guests in Niagara without interruption. We look forward to welcoming guests well into the future.”
In a news release, Hornblower said a private equity firm, Strategic Value Partners LLC, will acquire majority ownership and provide a “significant” equity investment.
Niagara Falls Mayor Jim Diodati said he isn’t concerned about the future of Hornblower’s operations in Niagara Falls.
“Niagara Falls had a record-breaking year in terms of passenger counts and the other key performance indicators,” Diodati said.
“This year, they are already on track for another record-breaking year in terms of an early season start, passenger counts and service levels. They look forward to servicing millions of guests in 2024 and beyond.”
Hornblower operates three divisions: an Australian company, a ferry and sightseeing division, and a luxury one-night cruise division called American Queen Voyages (AQV), which consists of paddlewheel riverboats.
The news release said AQV has “underperformed” financially having never recovered from the pandemic.
The company said it would try to sell AQV, and “if a sale cannot be achieved, its operations will be wound down.”
“We have strong relationships with our government agency and business partners, and our core businesses are performing well with robust and growing demand,” Rabbitt said.
“The steps we are taking today will enable us to address AQV and strengthen our financial foundation as we continue serving our guests and commuters around the world.
“With the support of our financial stakeholders, we will continue to advance our business initiatives and drive growth.”
The advertisement in Canada said anyone seeking further information could contact accounting firm Grant Thornton, which has the documents from the court proceedings on its website.