OPINION: Disney will file for bankruptcy.

[OnceUponATime15]

Disney is a part of a group of large corporations who’s CEOs met with WH including the President just last week, to request a bailout. The amount requested by the corporations was pegged at 100 billion.

Bankruptcy is only one option for Disney. I’m sure the powers that be are already looking forward with uncertainty and eyeing all options.

 

[Searc]

I'm far more worried about the companies that were already in the red before this whole thing started. (Sears, Game Stop, American Girl, etc) Disney will take a hit, but they'll be fine in the long run.

American Girl is owned by Mattel. They'll be fine.

 

[sailorstitch]

American Girl is owned by Mattel. They'll be fine.

Umm... No. Mattel is also in a lot of financial trouble. I track both companies very closely. American Girl has been losing money for the past two years. They finally starting to turn things around, but they haven't started turning a profit again. If these closures go on too long, it could possibly kill both companies.

 

[Mackenzie Click-Mickelson]

It would be unlikely that Disney would cease to exist. I can see a reorganization, a re-evaluation of thing (like trimming the fat) but to up and not exist any more is unlikely; they aren't the type to want to throw in the towel. They were doing finanically good beforehand (though yes recent acquisitions add a layer of burder). Most of the companies that have gone by the wasteside did because they were in financial trouble. I'm worried about JCP who was already and has already for the last several years on the verge of non-existence. Coming back from this all may prove more difficult for companies that were known to be struggling.

 

[AurumPunzel]

I seriously doubt it. Disney has been through the same phase in the past, and managed to bounce back. They've managed to bounce back after WW2, Walt's death, financial failures of attempted PG faire while using the Walt Disney brand, the Gulf War recession, the UK's withdrawal from the ERM, 9/11, the post-Renaissance slump, the credit crunch and the resulting global financial crisis of the late 00s, so I'm sure they'll bounce back after the coronavirus pandemic, especially now that they have the global Disney+ service, and revenue is set to increase as it becomes available in other markets. When this is all over, Disney+ will be their Cinderella, and The Walt Disney Company will come back a stronger corporation.

It would be unlikely that Disney would cease to exist. I can see a reorganization, a re-evaluation of thing (like trimming the fat) but to up and not exist any more is unlikely; they aren't the type to want to throw in the towel. They were doing finanically good beforehand (though yes recent acquisitions add a layer of burder). Most of the companies that have gone by the wasteside did because they were in financial trouble. I'm worried about JCP who was already and has already for the last several years on the verge of non-existence. Coming back from this all may prove more difficult for companies that were known to be struggling.

I only hope this doesn't mean the Disney Stores will be sacrificed, seeing as they already have been cutting back on a lot of stores lately, given that they have suffered from the fallout the TCP ownership between 2004-2008 has brought upon them. They could, however, start refurbishing some stores and returning to major markets they once lost, but this time not going overboard on expansion like they did during the Renaissance.

 

[tvguy]

Disney is pretty diversified. And pretty profitable. So their income stream (no pun intended) will shift from Parks to things like Disney Plus. I think bankruptcy won't be necessary.

 

[JACKNAG]

What would happen to our reservation payment if Disney files for bankruptcy,
and who thinks this can happen

 

[SaintsManiac]

What would happen to our reservation payment if Disney files for bankruptcy,
and who thinks this can happen

It's not going to happen. Don't let this kind of speculation freak you out.

 

[Jennasis]

At this point, I've discovered that a great many things I thought could never happen, have happened. SO anything is possible.

Really I'm just waiting for the inevitable alien invasion.

 

[RivShore]

This click-bait thread is really out there! Long before bankruptcy is considered, some company, like an Apple (who's sitting on a boatload of cash), would take an equity stake in Disney to keep things going.

 

[Delite]

They took out billion dollar loans Friday. Asking for bailout money. Has no one but me seen the news?

 

[DLgal]

They took out billion dollar loans Friday. Asking for bailout money. Has no one but me seen the news?

They were extended $5B in credit with Citibank just today, and they sold off $6B in debt securities earlier so they are sitting on an estimated $13B in available credit. They will be fine.

 

[shelemm]

This is news, but it is not surprising. I would be surprised if they didn't borrow/ask. So I consider this ho-hum news.

 

[longboard55]

they own a lot of stuff, easily could sell hotels and cruise ships and just manage them. They are not close to bankruptcy

 

[goofy4prez]

I disagree. Yes, they’ll take a hit. But their business is enviable. People aren’t clamoring to go eat at their neighborhood diner, but Disney’s client base is dreaming of getting to spend any extra money they have on Disney.
I know I am. Heck, planning a Disney trip is part of my daily therapy lately.

Sure Disney may be ok, even if this goes on for a year before they open again. But I'm not so sure we should be assuming Disneys client base will be ready, willing, and able to return to Disney ready to spend their extra money on Disney. There are millions of people out there who have been laid off. The longer this goes the more of those people will not have a job to return to. Among these numbers of unemployed people and small businesses that go belly up are going to be Disney people who have spent a lot of money on Disney will now be worried about finding new jobs, trying to keep their homes and to get back to some financial stability. We have already reached an unprecedented number of out of work Americans than we ever have in our history and there are going to be some serious aftereffects of this.

 

[Minnesota!]

Ask avengerspoilere, or whatever their name is...He/she can predict the future

Fwiw, I don't think bankruptcy, but I think the wdw we all know and love is gone for at least 3 years.