The future looks bleak for the bankrupt Freestyle Music Park after foreclosure proceedings were filed against it by its largest creditor.
Freestyle Music Park has been closed throughout 2010 after its owners ran into financial problems. Now, creditor FPI US has started the foreclosure proceedings against owner FPI MB Entertainment, which could lead to the park being liquidated. This would either lead to it being sold on as a going concern (as happened during a previous bankruptcy in 2008), or to its attractions being sold off individually and the park closed permanently.
Located in Myrtle Beach, Freestyle Music Park has struggled to stay afloat since opening in April 2008 under the Hard Rock Park name. Visitor numbers fell well short of the owner's 3 million target and the park was forced to file for Chapter 11 bankruptcy protection, closing its gates in September 2008. It was then picked up by FPI MB Entertainment for just $25 million, having cost a reported $400 million to build. It reopened for the 2009 season under the Freestyle Music Park name, but has continued to be plagued by poor attendance figures and financial problems.
In addition to the $30.8 million debts owed to FPI US, the park also faces more than 17 lawsuits due to its failure to meet financial obligations. This includes a suit from automaker BMW, which claims that cars on the Freestyle Music Park's Round About ride look similar to the BMW Mini, and that the park should have signed a licensing deal to use the likeness.