SCBIZ Daily Staff

MYRTLE BEACH -- Three months after it officially opened to the public, the owners of Hard Rock Park have filed a voluntary Chapter 11 petition.

HRP Myrtle Beach Holdings LLC, the parent company of Hard Rock Park, announced Wednesday that it is closing the park for the rest of the year to focus on a financial reorganization. By filing voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code, HRP Holdings said it will have the opportunity to restructure its balance sheet and reduce its debt to ensure the future health and sustainability of the company.

"The downturn in overall consumer spending combined with rising fuel costs have had a significant impact on tourism in Myrtle Beach and other markets. Additionally, the frozen credit markets and the unprecedented volatility in the global financial markets has severely limited our ability to line up the planned financial resources needed to execute our summer marketing plan and adequately promote the Park," CEO Steven Goodwin said in the statement. "As a result, we have made the strategic decision to utilize the Chapter 11 process to proactively address these issues and provide the park with the financial resources it requires for future success."

The $400 million, 55-acre park in Myrtle Beach, tagged as the world’s first rock ‘n’ roll theme park, officially opened its gates with much fanfare in June and had expected to draw up to 30,000 visitors a day. Company officials have not released attendance records for the park, but have said it has not been what they expected.

By August, officials announced they had laid off between 25-30 employees, and in early September, the company announced it was cutting the days the park would be open in September and October from four to three.

In addition, an Israeli company that had invested $10 million in the company announced earlier this month that it was writing off its investment.

"I would like to thank our employees, annual pass holders, visitors, vendors, sponsors and all of the other great people that were essential in making our inaugural season happen,” Goodwin said. “ Visitors to Hard Rock Park overwhelmingly compare their experience to the best that major theme parks have to offer, and we look forward to continued success as a first class entertainment destination in the years to come."

For more information on HRP's reorganization, visit the Hard Rock Park Web site.