Hornblower Group to Be Acquired, Puts American Queen Voyages Up for Sale

Hornblower Group today announced that it will be acquired by investment group Strategic Value Partners shedding some light on the reason for the closure of its American Queen Voyages division, which occurred yesterday.

The purchase agreement, which will see an equity investment of $121 million in “new-money financing,” sets Strategic Value Partners up as the majority owner of the company with Crestview Partners retaining “a significant minority position,” as well as full ownership of Journey Beyond, an Australia-based stand-alone operating unit of Hornblower.

As part of the plan to implement the sales agreement, Hornblower and “certain of its affiliates” have entered into a voluntary court-supervised process under Chapter 11 of the U.S. Bankruptcy Code. The company expects to emerge from Chapter 11 in about four months.

Separately, the company is commencing ancillary proceedings in Canada under the Companies’ Creditors Arrangement ACT (CCAA), seeking recognition of the U.S. Chapter 11 proceedings in Canada.

When completed, the new financing will go towards debt reduction and supporting the ongoing operations of its land- and water-based experiences and transportation services, not including American Queen Voyages, which the company said has been underperforming and “will be sold or wound down, as that division has not recovered from the pandemic.”

“Since 2011, American Queen Voyages (AQV) has proudly celebrated the American spirit of adventure and discovery. From our iconic paddlewheel river cruises through the heartlands to our small-ship expeditions in Alaska, we have been focused on providing guests with world-class travel experiences. It is most unfortunate that, despite great efforts by our team, crew and partners, AQV has been unable to fully rebound from the effects of the pandemic,” said Adam Peakes, president, Hornblower Group.

According to the announcement, the”collective actions” the company is taking will enable it “to move ahead with a more focused portfolio, stronger balance sheet, and additional financial flexibility, well-positioned to continue driving growth in its core land- and water-based experiences businesses.”

“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,” said Kevin Rabbitt, CEO of Hornblower Group.

Outside of the closure of AQV and cancellation of all upcoming cruises, the remainder of Hornblower’s current services will not be impacted in any way by the sale. Guests impacted by the closure of American Queen Voyages can submit a refund claim at www.aqvrefunds.com.

TMR has reached out to Hornblower Group to find out the status of commissions still owed to travel advisors for past AQV sailings.