Legoland’s owner is deep in debt after Florida and California visits fell

Merlin Entertainments, which runs every Legoland park, lost 406 million British pounds last year and is refinancing debt due in 2027. Visits to Legoland Florida and California fell in 2025, but the parks are still adding rides.

The company behind Legoland has a money problem.

Merlin Entertainments posted a loss of 406 million British pounds for 2025, and it carried about 3.97 billion pounds in borrowings at year’s end, according to its annual report. The Telegraph’s Oct. 10 headline put it bluntly: Legoland’s owner is “falling apart brick by brick.”

No Legoland park closures have been announced. But U.S. Legoland fans have a reason to pay attention.

Is Legoland closing?

No. Merlin hasn’t announced any U.S. park closures or sales, and we didn’t find any reporting that one is planned.

If anything, the U.S. parks are getting new rides and lands.

How much debt does Legoland’s owner have?

A lot. Merlin reported nearly 4 billion pounds in borrowings and about 123 million pounds in cash at the end of 2025.

Here’s how worried investors have gotten:

• 2025: S&P Global cut the rating on Merlin’s parent company to CCC+, calling its capital structure “unsustainable,” Octus reported.

• August 2026: Some of Merlin’s bonds were trading around 77 cents on the dollar, according to Octus.

• Sept. 28, 2026: Bloomberg reported Merlin’s bonds tumbled as its debt fix “leaves doubts.”

Bonds trading well under face value usually mean investors aren’t sure they’ll be paid back in full.

What is Merlin doing about its debt?

Borrowing to pay off what’s due first. On Sept. 10, Merlin said it had lined up new loans of $396 million and 418 million euros, about 657 million pounds in all.

That money will pay off about 630 million pounds of bonds due in 2027. Merlin expects the deal to close “by the end of 2026.”

The new loans are backed by some of Merlin’s London attractions, including the London Eye and London Dungeon, Sky News reported.

Why did fewer people visit Legoland Florida and California in 2025?

Merlin’s North America business drew 12.7 million visitors in 2025, down 6.2%, according to its annual report. Revenue there fell 8% in pounds.

Merlin said the drop was “particularly at the LEGOLAND resorts in California and Florida.”

For Florida, Merlin pointed to “the entry of a new resort into the Florida market.” It didn’t name it. Universal’s Epic Universe opened in Orlando in May 2025, about an hour from Legoland Florida in Winter Haven.

There’s some good news in the same report. Legoland California and Legoland Florida both grew revenue in the last three months of 2025.

What’s new at Merlin’s U.S. parks?

Merlin is still spending money here:

• LEGO Galaxy: a space-themed attraction that opened at Legoland Florida in February 2026 and Legoland California in March 2026. The two openings cost a combined 70 million pounds, Merlin said.

• LEGO Ferrari Build & Race: opened at Legoland New York in March 2026.

• Peppa Pig Theme Park Dallas-Fort Worth: opened in March 2025, joining the one in Winter Haven, Florida.

Not every bet has paid off. Legoland New York, which opened in Goshen in 2021, took a write-down of 110 million pounds in 2024, according to Merlin’s filings.

Legoland also has a 2027 exclusive LEGO set with its own roller coaster, as we reported Sept. 27.

Who owns Legoland?

Not the LEGO Group, though the two share a major owner.

Legoland belongs to Merlin. Merlin, in turn, is owned by a group led by Kirkbi, the holding company of the Kirk Kristiansen family that controls LEGO. Kirkbi owns about 47.5%.

Investment firm Blackstone owns about 32%, Canadian pension fund CPP Investments about 15.5% and the Wellcome Trust about 5%, according to bond documents cited by Octus. Kirkbi, Blackstone and CPP Investments took Merlin private in 2019 in a deal worth about 6 billion pounds, including debt.

In February, the LEGO Group completed its purchase of Merlin’s 29 LEGO and Legoland Discovery Centers worldwide, 15 of them in the U.S. and Canada. Those are the smaller indoor attractions, often at malls, not the big parks.

What else does Merlin own?

Plenty you’ve probably visited.

Merlin runs Madame Tussauds, Sea Life aquariums and the London Eye, plus U.K. theme parks like Alton Towers. It also runs Legoland Shanghai, which opened in July 2025.

It took a write-down of 262 million pounds on Madame Tussauds in 2025. Overall, Merlin’s 2025 revenue slipped to about 2 billion pounds, and visitors fell to 60.5 million from 62.8 million.

How is Merlin doing in 2026?

Better in the U.S. than in Britain. Merlin called the first half of 2026 “resilient” in its September update, despite a “challenging consumer backdrop.”

North America had a strong first half, with more visitors and higher spending in the parks, Merlin said. The U.K. stayed tough.

Merlin didn’t release full numbers for the half.

Who runs Merlin Entertainments?

Fiona Eastwood, who became permanent CEO in February 2025. “2025 was a transitional year for Merlin,” she said in March.

Merlin’s restructuring has cut more than 1,000 jobs so far, according to its annual report.

If you’ve got Legoland tickets for this fall, nothing Merlin has announced affects your trip. Its refinancing is expected to wrap up by the end of the year.

Article compiled and written by Kambrea Pratt (editor-in-chief), Derek Gibbs (beat editor) and the Pirates & Princesses newsroom. Pirates & Princesses is part of WebReef Media.

Pirates and Princesses is your destination for Disney news, theme park updates, and the pop culture you love. From Disney cruises and travel tips to Disney fashion, food, collectibles, and movie news, PNP covers it all. Visit us at piratesandprincesses.net for daily coverage. Follow PNP on Facebook and Instagram, and listen to the Pirates & Princesses podcast on Apple Podcasts and YouTube.

Hat Tips:

• Merlin Entertainments (Motion JVCo), March 2026: 2025 annual report and accounts

• Merlin Entertainments, March 24, 2026: 2025 results release; Sept. 10, 2026: 2026 half-year review

• The Telegraph, Oct. 10, 2026: Legoland’s owner is falling apart brick by brick

• Bloomberg, Sept. 28, 2026: Legoland owner’s bonds tumble as debt fix leaves doubts

• Octus, Sept. 25, 2025, and Aug. 21, 2026: Merlin ratings, ownership and bond prices

• Sky News via Black Country Radio, September 2026: Merlin’s refinancing

• The LEGO Group, Feb. 27, 2026: acquisition of LEGO Discovery Centres and LEGOLAND Discovery Centres

• Fortune, June 28, 2019: LEGO family’s Merlin takeover

• Pirates & Princesses, Sept. 27, 2026: Legoland’s 2027 exclusive LEGO set

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