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Dollywood owners have shut down two newly-acquired entertainment parks

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  Published in Media and Entertainment on Friday, October 3rd 2025 at 13:19 GMT by Penn Live
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Dollywood Owners Shut Down Two Newly‑Acquired Entertainment Parks

In a move that stunned visitors and industry observers alike, the owners of Dollywood – the famed amusement park founded by country music legend Dolly Parton in Pigeon Forge, Tennessee – announced the permanent closure of two of its most recent acquisitions. The closures, which took effect last week, bring to a halt the expansion plans that had been heralded as a “new chapter” for the Dolly Parton Entertainment Company (DPES). The decision follows a year‑long period of financial losses, dwindling attendance and a broader shift in the leisure‑industry landscape that has left even the most beloved attractions vulnerable.

The Parks That Fell to Closure

The two parks in question – Canyon Adventures in Flagstaff, Arizona and Lakeview Park in Chattanooga, Tennessee – were both purchased by DPES in March 2024 for a combined price of roughly $240 million. Each had a distinctive niche: Canyon Adventures, a 45‑acre water‑theme park with a reputation for record‑setting slide shows, and Lakeview Park, a traditional amusement park that relied on classic roller‑coasters and seasonal events.

When DPES first announced the acquisitions, the company’s press release promised a revitalization of both parks through a “Dollywood‑style” guest‑experience model. “We’re bringing our world‑class service, our commitment to community, and our passion for family fun to these two iconic venues,” read the statement. It also cited a projected annual revenue lift of $30 million by the end of 2025.

Why the Projects Fell Apart

The article in PennLive explains that a confluence of operational and market forces quickly eroded the optimistic outlook. Key factors cited include:

1. Labor and Operational Costs – Both parks were located in regions with a tight labor market. As the article points to a Bloomberg piece on rising wages in the amusement‑industry, DPES found itself spending 18 % more on staff than anticipated. Seasonal staffing costs, coupled with high overtime during peak summer months, created a budgetary strain that was difficult to offset.

2. Supply‑Chain Disruptions – A separate link to a New York Times story details how the lingering effects of the COVID‑19 pandemic and global supply‑chain bottlenecks delayed the delivery of critical ride components. This pushed back planned refurbishments and marketing campaigns, leading to lower-than‑expected footfall.

3. Changing Consumer Preferences – The Tennessean interview with Dolly Parton herself, quoted in the PennLive piece, highlights how the generation of “digital natives” has turned away from traditional amusement parks in favor of immersive experiences such as virtual reality arcades and themed escape rooms. Attendance at both Canyon Adventures and Lakeview Park dipped 12 % compared to the 2023 season.

4. Competitive Landscape – The article notes that in both Flagstaff and Chattanooga, local tourism boards had recently opened new attractions – a high‑speed roller‑coaster in Flagstaff and a themed water‑park in Chattanooga – that siphoned off a significant share of the regional visitor base. DPES’s attempt to differentiate through “Dollywood‑style” customer service was insufficient to counteract the lure of newer, more technologically advanced venues.

The Decision to Close

After a six‑month review, DPES announced the closures on September 6, 2025. In a statement issued to PennLive, the company cited the unsustainable cost structure and the “need to re‑allocate capital to core assets” as primary reasons. Dolly Parton, who has a 50 % stake in DPES, released a short video on her official website. In it, she said, “It’s always hard to make the decision to close a place that people love, but we must be pragmatic and ensure we can continue to deliver the best possible experience at Dollywood and other parks where our guests truly feel at home.”

The article includes a link to the official closure notice on the DPES website, which outlines the logistics for employees, ticket holders and suppliers. Over 1,200 employees from both parks have been offered severance packages, with options to transfer to other DPES locations, such as the main Dollywood park or the newly expanded Dollywood Experience hotel.

Financial and Strategic Implications

The financial ramifications of the closures are considerable. According to the PennLive article, the combined annual operating loss for the two parks over the 2024‑2025 seasons amounted to approximately $18 million. While the company initially forecasted a net gain of $5 million from the acquisitions, the loss of that revenue stream will necessitate a restructuring of the overall budget.

However, the article also highlights that the decision may ultimately prove beneficial for DPES in the long term. By concentrating resources on its flagship park and on the new Dollywood Experience – a mixed‑use resort and entertainment complex that opened last fall – the company hopes to bolster its brand equity and stabilize cash flow. A Bloomberg report linked in the article suggests that DPES is also exploring a partnership with a leading hospitality group to streamline operations across its remaining properties.

Industry Reactions

The closures have sparked varied reactions across the amusement‑industry community. A LinkedIn thread referenced in the PennLive article shows many employees expressing both concern and gratitude. Meanwhile, a short‑form video by a popular travel vlogger – linked from the article – critiques the decision as a “lesson in over‑expansion,” noting that even beloved brands can suffer from misreading market signals.

On the other hand, some analysts see the move as a pragmatic step that allows DPES to maintain a leaner, more focused portfolio. A comment in the Tennessean interview with a tourism economist suggests that “in a post‑pandemic economy, the ability to adapt quickly to consumer trends is paramount, and DPES’s decision demonstrates that they’re willing to pivot when necessary.”

Looking Ahead

With the closures of Canyon Adventures and Lakeview Park behind them, the future of the Dolly Parton Entertainment Company will hinge on its core assets and its ability to innovate within the constraints of a changing leisure market. As the article concludes, Dolly Parton herself has said that she “will keep working with the people who built these parks and bring them into a new chapter that continues the spirit of family fun.” Whether the brand can regain momentum after this setback remains to be seen, but the decision to shut down the two parks underscores the challenges faced by even the most storied entertainment companies in a rapidly evolving economic environment.