Discovery Zone (or DZ for short) was a chain of entertainment facilities featuring games and elaborate indoor mazes designed for young children, including slides, climbing play structures and ball pits. The chain was founded by Ronald Matsch, Jim Jorgensen and Dr. David Schoenstadt in 1989. The first store was opened in Lenexa, Kansas in January of 1990. An early investor and vocal supporter of the company was tennis player Billie Jean King.[1] Other places similar to Discovery Zone include Chuck E. Cheese's and Wonder Camp (a chain which closed in 1997). McDonald's started a similar chain called Leaps and Bounds which merged into Discovery Zone in 1994.
IPO and Merger
Discovery Zone completed a successful IPO in June of 1993 (led by Chris Bellios) and Ian Kitchens raising over $50 million. In 1994, Discovery Zone merged its operations with Blockbuster Video (and its parent, Viacom).
Bankruptcy
Stretched thin by expansion, changes in management tried to save the company, however (under Viacom's control) Discovery Zone filed for bankruptcy on March 26, 1996 in Wilmington, Delaware with debts of up to $366.2 million.[2] Chuck E. Cheese's parent company purchased 500 Discovery Zone locations and turned them into Chuck E. Cheese's facilities by the end of 1999.
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