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((short description|Family entertainment center chain))
((more citations needed|date=January 2017))
((Infobox company
| name = Discovery Zone
| logo = Discovery Zone Logo.png
| logo_caption = The 1989–1998 Discovery Zone Logo
| type = [[Public]] (1993-1997)<br>[[Privately held company|Private]] (1997-2001)
| traded_as = ((NASDAQ was|DZ))
| industry = [[Fast food]] and [[entertainment]]
| owner = Independent (1989–1995)<br>[[Blockbuster Video]] (1995–1997)<br>Wellspring Associates LLC (1997-2001)
| successor = [[Chuck E. Cheese]]
| fate = [[Bankruptcy]] and [[liquidation]]
| foundation = ((Start date and age|1989|10))<br>[[Kansas City metropolitan area|Kansas City]], [[Missouri]], [[United States|U.S.]]
| founder = Ronald Matsch<br>[[Jim Jorgensen]]<br>Dr. David Schoenstadt
| defunct = ((End date and age|December 2001))
| location_city = [[Wilmington, Delaware|Wilmington]], [[Delaware]]
| location_country = U.S.
| area_served = Worldwide
| products = Family entertainment centers
))
'''Discovery Zone''' ('''DZ''') was an American chain of [[Family entertainment center|entertainment facilities]] featuring games and elaborate indoor mazes designed for young children, including roller [[Playground slide|slide]]s, climbing play structures, and [[ball pit]]s.  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 in [[Kansas City, Missouri]], in October 1989. An early investor in and vocal supporter of the company was tennis player [[Billie Jean King]].<ref>((cite news|url=https://query.nytimes.com/gst/fullpage.html?res=9D0CE1DE143AF930A15752C0A967958260 |newspaper=[[The New York Times]] |title=Chronicle |last= Anderson |first=Susan Heller|date=January 23, 1991 |accessdate=April 28, 2012))</ref>

Discovery Zone was also notable for being the first [[sponsor (commercial)|corporate sponsor]] of the [[PBS]] children’s program ''[[Sesame Street]]'' and ''[[Barney & Friends]]''.

In 2020, a new center using the Discovery Zone name opened in the [[Cincinnati, Ohio|Cincinnati]] suburb of [[Union Township, Clermont County, Ohio|Union Township]], [[Ohio]]; it is not affiliated with the original company, but is heavily inspired by it.<ref>((cite web |title=About Us |url=https://discoveryzone.com/about-us |access-date=5 March 2021))</ref> A second location was added in [[Florence, Kentucky]], at the [[Florence Mall (Kentucky)|Florence Mall]] on July 23, 2021.

==History ==

Founded in 1989, Discovery Zone grew quickly, opening 15 stores in 18 months.<ref>((cite web|url=https://www.gsb.stanford.edu/faculty-research/case-studies/discovery-zone|title=Discovery Zone))</ref> In April 1993, [[Blockbuster Video]] invested $10.3 million (~$((Format price|((Inflation|index=US-GDP|value=10300000|start_year=1993)))) in ((Inflation/year|US-GDP))) into Discovery Zone to purchase 21% of the company. 

In June 1993, Discovery Zone went public on the [[NASDAQ]] exchange, raising $55 million (~$((Format price|((Inflation|index=US-GDP|value=55000000|start_year=1993)))) in ((Inflation/year|US-GDP))) on the [[IPO]].<ref name="auto">((cite news|url=https://www.nytimes.com/1993/06/05/business/company-news-discovery-zone-shares-rise-61.4-in-first-day-trading.html |newspaper=[[The New York Times]] |title=DISCOVERY ZONE SHARES RISE 61.4% IN FIRST-DAY TRADING |date=June 5, 1993))</ref> The stock rose 61% in the first day of trading.<ref name="auto"/>

Under the leadership of then CEO Don Flynn, in July 1994, Discovery Zone bought 45 [[Leaps and Bounds (playplace)|Leaps and Bounds]] stores from [[McDonald'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.<ref>((cite news |url=http://articles.chicagotribune.com/1994-07-19/business/9407190331_1_discovery-zone-indoor-playground-blockbuster-entertainment-corp|newspaper=[[Chicago Tribune]] |title= McDonalds To Unite Play Unit With Discovery Zone |date=July 19, 1994))</ref>

Blockbuster Video, then a subsidiary of [[Viacom (1952–2006)|Viacom]], took total management control of Discovery Zone in April 1995.<ref>((cite news |url= https://www.nytimes.com/1995/04/18/business/company-news-viacom-s-blockbuster-unit-to-run-discovery-zone.html|newspaper=[[The New York Times]] |title= VIACOM'S BLOCKBUSTER UNIT TO RUN DISCOVERY ZONE |date=April 18, 1995))</ref> Viacom had plans to cross market Discovery Zone with its other businesses, such as [[Nickelodeon]], [[Paramount Pictures]], and [[Showtime (TV network)|Showtime]]. By the time Viacom took control of Discovery Zone, the company signed a deal with [[Saban Entertainment]] to include characters from the ''[[Mighty Morphin Power Rangers]]'' television series at the play centers.<ref name="latimes.com">((cite news|url=https://www.latimes.com/archives/la-xpm-1995-07-05-fi-20424-story.html%3f|newspaper=[[Los Angeles Times]]|title=Viacom Toys With Discovery Zone Strategy : Entertainment: The new owner of the indoor-playground centers seeks to boost profit through repeat business.|date=July 5, 1995|accessdate=August 15, 2019))((Dead link|date=August 2023 |bot=InternetArchiveBot |fix-attempted=yes ))</ref> Discovery Zone had also planned a new family entertainment center to compete against [[Dave & 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.<ref name="latimes.com"/>

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, in [[Wilmington, Delaware]], with debts of up to $366.8 million.<ref>((cite news |url=https://query.nytimes.com/gst/fullpage.html?res=9C02E6DD1239F932A05750C0A960958260 |newspaper=[[The New York Times]] |title=Diary |date=March 31, 1996 |last=Mills |first=Joshua |accessdate=April 28, 2012))</ref> They emerged a year later on July 30, under the private ownership of [[Wellspring Capital Management|Wellspring Associates LLC]].<ref>((Cite web |last= |date=1997-07-30 |title=DISCOVERY ZONE BOUNCES BACK |url=https://www.sun-sentinel.com/news/fl-xpm-1997-07-30-9707290399-story.html/ |url-access=subscription |access-date=2023-07-24 |website=Sun Sentinel |language=en-US))</ref>

In April 1999 Discovery Zone re-entered bankruptcy. This time with the abrupt closure of half of their locations on June 30, that same year and being unable to alert those with reserved parties.<ref name=cnn1999>((cite web|url=https://money.cnn.com/1999/06/30/companies/discovery/|title=Discovery Zones out|publisher=[[CNN]]))</ref><ref>((cite news |url=https://www.washingtonpost.com/archive/business/1999/06/26/discovery-zone-abruptly-closes-100-centers/937bb97e-6807-49c6-95bd-f2390edd0263/ |url-status=dead |archive-url=https://web.archive.org/web/20200702215218/https://www.washingtonpost.com/archive/business/1999/06/26/discovery-zone-abruptly-closes-100-centers/937bb97e-6807-49c6-95bd-f2390edd0263/ |archive-date=2020-07-02 |title=Discovery Zone Abruptly Closes 100 Centers - The Washington Post|newspaper=[[The Washington Post]] ))</ref> Thirteen locations were sold to CEC Entertainment, Inc., owner of [[Chuck E. Cheese]], who attempted to accommodate last minute party reschedulings over the following days.<ref name=cnn1999/>

In June 2000, Discovery Zone's [[United States bankruptcy court|bankruptcy court]] judge ruled that there was no feasible way for the brand to be profitable, and their bankruptcy was converted into [[liquidation]]. 

By the end of 2001, the remaining 205 locations (in 39 states, Canada, and Puerto Rico) shut down and Discovery Zone went out of business completely.<ref name=":0">((Cite web|url=http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=27643|title=Discovery Zone, Inc.: Private Company Information - Businessweek|last=|first=|date=2016-03-07|website=Bloomberg Business|url-status=live|archive-url=https://web.archive.org/web/20160307104131/http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=27643|archive-date=2016-03-07|access-date=2019-10-24))</ref>

==Slogans==

* "It's Fun-believable Fitness For Kids"
* "DZ it's Discovery Zone, Where Kids Can Be Kids On Their Own" (TV commercials)
* "Zoned In"
* "I'm Goin' DZ" / "Where Kids Wanna Be"
* "You're Either In The Zone, Or You're Not"
* "Exercise Your Right"
* "Are You Ready For The New DZ?"
* "Never The Same Fun Twice"
* "DZ! Where kids wanna be!"

== References ==
((Reflist))

==External links==
*[https://web.archive.org/web/20160307104131/http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=27643 BusinessWeek profile] (archived)
*[https://discoveryzone.com/ Discovery Zone website]

((portalbar|Companies))

((Blockbuster))

[[Category:Entertainment companies established in 1989]]
[[Category:Entertainment companies disestablished in 2001]]
[[Category:Restaurants established in 1989]]
[[Category:Restaurants disestablished in 2001]]
[[Category:Companies that filed for Chapter 11 bankruptcy in 1996]]
[[Category:Companies that filed for Chapter 11 bankruptcy in 1999]]
[[Category:Companies that filed for Chapter 7 bankruptcy in 2000]]
[[Category:Companies that have filed for Chapter 7 bankruptcy]]
[[Category:Defunct companies based in New York (state)]]
[[Category:1990 establishments in Kansas]]
[[Category:Blockbuster LLC]]
[[Category:Former Viacom subsidiaries]]
[[Category:Defunct retail companies of the United States]]
[[Category:Defunct restaurants in the United States]]

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