Citing the fallout from Covid-19, cruise operator Hornblower has filed for bankruptcy, and its American Queen subsidiary has ceased operations.
Private-equity firm Strategic Value Partners has agreed to acquire majority ownership of Hornblower and “provide a significant equity investment in the business,” but the deal will require approval from the US Bankruptcy Court in Houston, the Wall Street Journal reported. Private-equity firm Crestview Partners will retain a minority interest and become the sole owner of Journey Beyond, the leading experiential travel provider in Australia.
Hornblower said in a statement that American Queen Voyages hopefully will be sold; if no buyer is found its operations will be wound down.
Hornblower also provides ferry services to the Statue of Liberty and the Ellis National Museum of Immigration in New York, and to Alcatraz Island in San Francisco. Those services will continue operations.
Guests who have booked an American Queen Voyages cruise should visit the line’s dedicated refund website to submit a claim form and begin the refund process, or call (888) 202-5784.
Hornblower said it expects to move through the bankruptcy process quickly and emerge from Chapter 11 in about four months. It has a commitment for $300 million in financing from Deutsche Bank, $121 million in new-money financing from SVP-managed funds and Crestview.
“The steps we are taking today will enable us to address AQV and strengthen our financial foundation as we continue serving our guests and commuters around the world. With the support of our financial stakeholders, we will continue to advance our business initiatives and drive growth. We thank the entire Hornblower team for their hard work and dedication, as well as our vendors and partners across our businesses for their continued support,” said Hornblower Group CEO Kevin Rabbitt.
