Disney Ride Manufacturer Files for Bankruptcy, Potentially Delaying Future Projects

Disney customers, who don’t get to see behind the curtain, most likely believe that Disney has steel workers and fabricators sitting backstage, waiting to create whatever ideas pop into the Imagineers’ heads. However, since the opening of Disneyland in 1955, Disney has always relied on outside companies to provide the structure of its rides.

The first company that Walt Disney contracted with was Arrow Development. They create such iconic Disneyland rides as Snow White’s Scary Adventures and Dumbo the Flying Elephant.

When Walt Disney switched his attention to Walt Disney World in Florida, he needed a new company for the expanded Park and new rides. After having contracts with several different companies love the years, the Walt Disney Company found the Canadien company Dynamic Attractions Limited (DAL).

DAL started as a company that built large-scale telescopes and astronomy centers for government astronomers. Eventually, the company used its knowledge of steel to move into the amusement Park industry. In the early 2000s, DAL began building several innovative rides for the Walt Disney Company, including Radiator Springs Racers at Disney’s California Adventure and Test Track and Soarin’ Around the World at EPCOT.

With the success of its Disney projects, Universal Studios came calling. Just before the market crash in 2008, DAL moved completely out of the steel industry to focus entirely on creating amusement Park rides.

For Universal, DAL created the Amazing Adventures of Spider-Man, Revenge of the Mummy, and Harry Potter and the Forbidden Journey. Its newest ride, Mario Kart Koopa’s Challenge, just opened at SUPER NINTENDO WORLD at Universal Studios Hollywood. In 2018, DAL was at the top of its game, making $135.4 million.

And then came Covid. As the world froze, so did Theme Park construction. Walt Disney World postponed or completely shelved several projects. The stoppage came at an especially bad time for DAL.

The company put all it had into a new rollercoaster, the SFX Coaster. DAL promised that it would be a one-of-a-kind experience and immediately sold several of them to foreign companies, including Chinese developer Evergrande. According to Forbes, Evergrande borrowed $300 million to pay for the coasters but then ran into financial trouble during Covid and could not make the payments to DAL.

With costs rising and the Theme Park industry reeling from shutdowns, especially in markets like China, DAL had to file for Chapter 11 bankruptcy in a Canadian court. With very few options, DAL is now up for sale and actively looking for someone who can buy an innovative company with a large customer base of prestigious Theme Park companies.

At the opening of Tron Lightcycle/Run, Disney Parks, Experiences, and Products, Josh D’Amaro said that Walt Disney World would be expanding and Tron was “the tip of the iceberg of what’s coming.” DAL’s bankruptcy and impending sale could cause Disney to delay some of its new experiences.

A Canadian court recently approved putting DAL on the market and will accept bids on the company until April 28. The final auction of the company will take place in June. This will put DAL out of commission for the next few months and delay any projects it is currently working on for Disney and Universal.

The Walt Disney Company does work with other companies on its rides, but DAL seems to be their go-to for new innovations. We will see how this will affect future Disney World projects.

We will continue to update this story at Disney Fanatic.