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 1989–1998 logo | |
| Company type | Public (1993-1997) Private (1997-2001) |
|---|---|
| Nasdaq: DZ | |
| Industry | Fast food andentertainment |
| Founded | October 1989; 36 years ago (1989-10) inKansas City,Missouri, U.S. |
| Founder | Ronald Matsch Jim Jorgensen Dr. David Schoenstadt |
| Defunct | 1999; 27 years ago (1999) (general operations) December 2001 (2001-12) (dissolution) |
| Fate | Bankruptcy andliquidation |
| Successor | Chuck E. Cheese |
| Headquarters | , U.S. |
Number of locations | 203 (May 1998) |
Area served | United States Canada Puerto Rico |
| Products | Family entertainment centers |
| Owner | Independent (1989–1995) Blockbuster Video (1995–1997) Wellspring Associates LLC (1997–2001) |
Discovery Zone (DZ) was an American chain ofentertainment facilities featuring games and elaborate indoor mazes designed for young children, including rollerslides, climbing play structures, andball pits. It also featured arcade games. A talking robot character named Z-Bop served as mascot to the chain. Ronald Matsch,Jim Jorgensen and Dr. David Schoenstadt founded Discovery Zone in 1989, with the first location opening inKansas City, Missouri, in October 1989. An early investor in and vocal supporter of the company was tennis playerBillie Jean King.[1]
Discovery Zone became the firstcorporate sponsor of thePBS children's programSesame Street in 1998, ending a 29-year long streak without on-air support.[2]
A company unaffiliated with the original company but heavily inspired by it opened a new center using the Discovery Zone name on February 7, 2020 in theCincinnati suburb ofUnion Township,Ohio at theEastgate Mall.[3] A second location was added inFlorence, Kentucky, at theFlorence Mall on July 23, 2021, while the Union Township location was closed in 2025.
Founded in 1989, Discovery Zone grew quickly, opening 15 stores in 18 months.[4] In April 1993,Blockbuster Video invested $10.3 million (~$20.1 million in 2024) into Discovery Zone to purchase 20% of the company with an option to increase its stake to 50.1 percent in June 1994.[5]
In June 1993, Discovery Zone went public on theNASDAQ exchange, raising $55 million (~$108 million in 2024) on theIPO. The stock rose 61% in the first day of trading.[6]
Under the leadership of then CEO Don Flynn, in July 1994, Discovery Zone bought 45Leaps and Bounds stores fromMcDonald's for $111 million in stock and 57 franchised stores from Blockbuster Video for $91 million in stock bringing the total stores to almost 300. At the same time, Blockbuster bought more shares of Discovery Zone giving it 50.1% of the stock.[7]
Blockbuster took total management control of Discovery Zone in April 1995.[8] Viacom had plans to cross market Discovery Zone with its other businesses, such asNickelodeon,Paramount Pictures, andShowtime. By the time Viacom took control of Discovery Zone, the company signed a deal withSaban Entertainment to include characters from theMighty Morphin Power Rangers television series at the play centers.[9] Discovery Zone had also planned a new family entertainment center to compete againstDave & Buster’s, which was dubbed “Metro Zone”. The new complexes would have included dining, drinking, mini golf and VR games in addition to the indoor playground equipment that Discovery Zone is known for.[9]
Stretched thin by expansion, changes in management tried to save the company; however, Discovery Zone filed for Chapter 11 bankruptcy protection on March 26, 1996, inWilmington, Delaware, with debts of up to $366.8 million.[10] They emerged a year later on July 30, under the private ownership of Wellspring Associates LLC.[11]
Wellspring Associates invested $20 million towards improving Discovery Zone's fun centers starting in 1998. The size of the "Mega Zone" play structure and toddler play area were decreased to make room for a sports challenge area and laser tag area themed to third-party properties and a karaoke stage, while arts & crafts activities were placed in the former Quiet Zone.[12]
On April 20, 1999, Discovery Zone, Inc. re-entered Chapter 11 bankruptcy protection. Discovery Zone abruptly closed 106 of its locations on June 25, unable to alert visitors with reserved parties.[13][14] Twenty of the latter locations (thirteen owned and seven leased) and the company's intellectual properties and trade names were sold to CEC Entertainment, Inc., owner ofChuck E. Cheese's, who attempted to accommodate last minute party reschedulings over the following days.[15][13] Ten locations were converted to Chuck E. Cheese's while the others were sold to third-parties.
In June 2000, Discovery Zone'sbankruptcy court judge ruled that there was no feasible way for the company to be profitable, and their bankruptcy was converted intoliquidation. By the end of 2001, Discovery Zone was out of business completely.[16]
| Notable people |  | |
|---|---|---|
| Blockbuster Entertainment Awards | ||
| Former brands and acquisitions | ||
| Lawsuits | ||
| Cultural impact | ||
