CHAPTER 11 FILED BY INDOOR PLAY FIRM.Byline: Ron Word Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Despite its popularity among the single-digit set, indoor playground operator Discovery Zone filed for bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most protection Monday from its creditors. The company, which started in 1990 and now has about 350 outlets, said it grew too fast and will have to renegotiate re·ne·go·ti·ate tr.v. re·ne·go·ti·at·ed, re·ne·go·ti·at·ing, re·ne·go·ti·ates 1. To negotiate anew. 2. To revise the terms of (a contract) so as to limit or regain excess profits gained by the contractor. rents on many of its storefronts and close other money-losing centers. Under the Chapter 11 bankruptcy law, the company will be able to continue operating while it revamps. Wilma Tucker, who was hosting a fourth birthday party for her son at the Discovery Zone in a suburb suburb, a community in an outlying section of a city or, more commonly, a nearby, politically separate municipality with social and economic ties to the central city. In the 20th cent. of Jacksonville, Fla., said she was surprised to hear the news as the center bustled with kids. After Cameron Tucker finished romping romp intr.v. romped, romp·ing, romps 1. To play or frolic boisterously. 2. To run or advance in a rapid or easy manner. 3. Slang To win a race or game easily. n. 1. with his pals over the maze maze, detail of landscape gardening based on the Greek labyrinth, consisting of intricate paths or alleys lined with high hedges and having a center and exit difficult to find. It was a prominent feature in the formal English gardens of the 17th and 18th cent. of tunnels and slides, and tumbling into a room filled with plastic balls, the party ended with pizza and cake. "The kids love it, they have a blast," Cameron's mother said. "I would definitely do it again." Part of Discovery Zone's problem may be that it caters almost exclusively to younger children. The centers appeal to a very narrow slice of the population - a group that depends on adults to get them to the store and spend money, said family entertainment consultant William Haralson. And while they might be jammed on the weekends, business can be slow during the week. "It's a lot of fun, but it's more fun for the kid than the guy trying to make a living running the thing," said Haralson of William Haralson & Associates Inc. in Dallas. Discovery Zone's new chief executive, Donna Moore, said the operation is a viable concept and the bankruptcy filing gives the company a chance to revitalize re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. the business. Discovery Zone's previous chief executive, Steven R. Berrard, resigned last week. "A successful Chapter 11 reorganization will address the problems caused by the company's rapid expansion and put Discovery Zone on stronger financial footing," Moore said. Discovery Zone has been in discussions with its lenders for months because it hasn't been able to generate enough cash to meet its debt and interest expenses. |
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