The lingering effects of the pandemic have claimed another victim. A storied American cruise company, American Queen Voyages made the unexpected decision to anchor all its ships and declare bankruptcy as its parent company was sold to an investment firm.
The adventure cruise line best known for its big Mississippi river paddlewheeler American Queen blamed the heavy debt left behind by the COVID-19 pandemic for the decision to cease operations and put its ships on the market.
“Despite our best efforts, demand for overnight cruises has not recovered following the pandemic, and AQV has become financially unsustainable,” the company announced in a website explaining how guests with bookings can apply for refunds.
The decision came with the announcement that parent Hornblower Group is getting a new majority owner: Strategic Value Partners, a global alternative investment firm. Crestview Partners retains a minority stake. Hornblower’s other divisions will get $121-million in new financing to continue their operations, including city tour companies that include Niagara Falls tours and harbor cruises in Toronto. Now that the U.S. Bankruptcy Court has confirmed Hornblower Group’s Plan of Reorganization, without AQV, its other services are operating as usual, the company says.
All sailings on the three riverboats that AQV had scheduled to operate this year — American Queen, American Countess and American Duchess — have been cancelled and two of the ships have already been slated to be scrapped after being purchased at a bankruptcy auction by competitor American Cruise Line. American Queen remains in limbo.
The shutdown decision was not made lightly, Hornblower Group President Adam Peakes said in a statement. “We are deeply proud of our employees and crew for the outstanding services they have provided our guests over the years. As the backbone of the AQV experience, we extend our deepest appreciation to our team for their unwavering commitment, passion and hard work, which has been exceptional. We would also like to express our heartfelt gratitude to our guests, partners, agents and the local communities where we call who have each been integral to our journey.”
American Queen Voyages is just the latest in a string of more than a dozen small cruise operators around the world to shut down since the start of the COVID-19 pandemic in 2020.
Other cruise brands that have gone bust in the past four years include luxury line Crystal Cruises and its two Asia-based sister brands, Dream Cruises and Star Cruises; Japan-based Venus Cruises; India-based Jalesh Cruises; Swedish-based Birka Cruises; U.S.-based small-ship specialist Blount Small Ship Adventures, and U.K.-based Cruise & Maritime Voyages. Almost all cited the financial impact of the pandemic. Crystal was later revived by Abercrombie & Kent.
The American Queen Voyages shutdown comes just eight months after small-ship rival Vantage Deluxe World ceased operations.
