The iconic boat tours at Niagara Falls, cherished by tourists for over 180 years, have been rescued by Hornblower Group after facing financial turmoil. The company, known for ferrying passengers near the falls, faced bankruptcy due to years of losses and massive debt. However, with a restructuring plan underway and a significant investment, Hornblower's Canadian operations are expected to lead its recovery.
Hornblower holds an exclusive agreement with the Niagara Parks Commission for boat tours on the Canadian side until 2043. Annually, approximately 2.5 million visitors embark on these tours, a tradition dating back to 1840. While the Canadian operations represent a small portion of Hornblower's global business, they are crucial for its restructuring efforts.
The COVID-19 pandemic severely impacted Hornblower, leading to substantial losses and a surge in debt. Despite its global presence, the company struggled to weather the financial storm. To address these challenges, Hornblower filed for bankruptcy protection under the Companies' Creditors Arrangement Act, ensuring the continuation of its operations.
The agreement with the Niagara Parks Commission is vital for Hornblower's Canadian business. Any threat to this arrangement could have severe repercussions. However, the company's recent profitability and commitment to fulfilling financial obligations indicate a positive outlook.
Strategic Value Partners LLC's majority stake acquisition in Hornblower, coupled with substantial financing, is expected to significantly reduce the company's debt burden. This move ensures the continuation of its services globally, including the beloved Niagara Falls tours.
In a positive development, Hornblower has received approval to commence Niagara Falls tours earlier than usual, signaling optimism for the upcoming tourism season. This early start aligns with efforts to revitalize the tourism industry, setting a promising tone for 2024.