Carousel Dinner Theatre AkronAkron, OH, January 5, 2009 - The Carousel Dinner Theatre, LLC has cancelled its 2009 season and closed its doors effective January 4, 2009.
For the past year, the economy has materially affected the theatre's attendance and its ability to make cost adjustments to keep pace with the decrease in attendance. The final tipping point became the reversal of certain stakeholders' written or verbal promises that would have had a major impact on the theatre's continuance for the 2009 season and beyond.
Mr. Joseph E. Palmer accepts full responsibility for this action and regrets the impact on one hundred fifty employees and their families and all others affected by this closure.
Ticket holders who have purchased advanced tickets and gift certificates on their credit cards should immediately contact their credit card company to process a full refund.
The Carousel Dinner Theatre
Joseph E. Palmer
ATTN: Creditors and Cash Ticket Holders, Subscribers, Gift Certificate Holders
It is with the greatest of all possible regrets that I inform you that the Carousel Dinner Theatre, LLC has closed its doors as of January 4, 2009.
As of December 31, 2008, Carousel's fair value of assets totals approximately $2,688,000 while its liabilities exceed $6,482,000. The major lender has a first mortgage on all real estate and a first lien on all the other assets. This lender is owed over $1,825,000, plus any accrued interest to the date of pay-off. A subordinated debt holder with a second mortgage on the theatre's land is owed over $1,750,000, plus on-going accrued interest.
Carousel will liquidate its assets and pay over the proceeds to the major lender. If any funds are left over, the subordinated debt holder will be paid the fair value of the security, subject to the rights of the preferential creditors. Remaining funds will be paid pro-rata to the creditors. At best, there will $800,000 left over to distribute against $4,457,000 in obligations. Realistically in today's market, there will be no excess funds to distribute.