COVID-19: Ardent Leisure to ‘temporarily’ close Main Event entertainment centres

Dreamworld owner Ardent Leisure has made a major decision impacting its US business Main Event entertainment centres.

DREAMWORLD owner Ardent Leisure has decided to “temporarily” close its Main Event entertainment centres in the US because of the coronavirus crisis.

The company in a statement to the ASX this morning said it made the decision following the US Government’s decision to issue stricter guidelines to stop the spread of COVID-19.

It said the decision is effective from Tuesday, March 17 (US time) through to the end of the month.

“The management team of Main Event views this as an appropriate decision in light of the current circumstances,” Ardent said.

Ardent is the owner of Dreamworld on the Gold Coast. Pics Adam Head

“Main Event will continue to monitor the situation to determine when the centres will reopen.”

Ardent Leisure yesterday announced a share trading halt pending an announcement.

Ardent said the halt was in connection with an announcement “regarding further developments in the impact of governmental responses to COVID-19 on Ardent’s business”.

Yesterday shares surged by 28 per cent to 22.5c before the trading halt.

Consentino. Picture: Jake Nowakowski

Ardent last week withdrew market guidance for its Main Event business, which runs entertainment centres in the US, because of coronavirus.

It said it expects the impact of coronavirus to continue for longer than first thought and that it was “adjusting operating costs, deferring non-essential capital investment, and ­reviewing other non-critical business activities and ­discretionary expenses

In other developments the company announced yesterday that it had made the decision to cancel the scheduled Consentino performances at Dreamworld for April 4 to 19 following Australian Government advice against non-essential gatherings of more than 500 people.

“While we are disappointed to have to make this decision, our number one priority is the health and safety of our guests and team members and it is important that we follow the advice from Public Health Authorities,” Ardent said in a statement.

“The continued day-to-day operations of Dreamworld and WhiteWater World has not been included in the advice against mass gatherings and we will continue to operate as normal for day trade.

“We will continue to closely monitor the situation by staying informed through the Public Health Authorities.”

The share trading pause follows Ardent losing more than half its value on Monday during the sharemarket’s worst loss in history.

Shares fell 52 per cent by close of trade to 17.5¢ yesterday, wiping $91.14 million off Ardent’s market capitalisation.

Shares were up to 22.5 cents in early trade before the announcement.