A complicated series of stories in the past few days has seen the shutdown of the American Queen river cruise line, the bankruptcy filing of its owner, Hornblower Group, and new owners with new money and plans.
American Queen, which operated large-scale paddlewheel steamboats on America’s internal waters, shut its operations completely last Monday night, and said the closure was permanent, with the business not having recovered from pandemic losses. It’s likely, though, that another operator may acquire the three vessels, and operate them, possibly on a similar basis.
The parent company, Hornblower, which has operations in 19 ports on three continents, filed a Chapter 11 bankruptcy in Texas on Tuesday, simultaneously announcing that a capital firm, Strategic Value Partners, would become the majority owner of the company, adding $121 million in new capital after shedding $720 million in debt through the bankruptcy filing.
Another private equity firm, Crestview Partners, will become sole owner of Journey Beyond, which had been Hornblower’s Australian operations, including boat charter and tourism train operations.
All other Hornblower operations, including its contract operating ferries in New York Harbor and the boat line to the Statue of Liberty will continue.
Image: American Queen at Memphis, TN (Thomas R Machnitzki/Wikimedia)
