Discovery Zone / Leaps & Bounds

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To Terry A, He provided majority of the token information on this page.

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Discovery Zone (DZ) was an American chain of entertainment facilities featuring games and elaborate indoor mazes designed for young children, including roller slides, climbing play structures, and ball 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 in Kansas City, Missouri, in October 1989. An early investor in and vocal supporter of the company was tennis player Billie Jean King.

Discovery Zone was also notable for being the first corporate sponsor of the PBS children's program "Barney & Friends" and Sesame Street.

History

Founded in 1989, Discovery Zone grew quickly, opening 15 stores in 18 months. In April 1993, Blockbuster Video invested $10.3 million (~$19.6 million in 2023) into Discovery Zone to purchase 21% of the company.

In June 1993, Discovery Zone went public on the NASDAQ exchange, raising $55 million (~$105 million in 2023) on the IPO. The stock rose 61% in the first day of trading.

Under the leadership of then CEO Don Flynn, in July 1994, Discovery Zone bought 45 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.

Blockbuster took total management control of Discovery Zone in April 1995. Viacom had plans to cross market Discovery Zone with its other businesses, such as Nickelodeon, Paramount Pictures, and 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. 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.

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. They emerged a year later on July 30, under the private ownership of Wellspring Associates LLC.

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. Thirteen locations were sold to CEC Entertainment, Inc., owner of Chuck E. Cheese, who attempted to accommodate last minute party rescheduling's over the following days.

In June 2000, Discovery Zone's 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.

Logo's

There were 3 main logo's that were used throughout the history of Discovery Zone. Type 1 was a boxed-style with ZO above Discovery and a NE below. This was used between 1991-1995. Type 2 was a two line Discovery Zone. This was used from 1995-1997. Type 3 was a DZ above a one line Discovery Zone. This was used from 1997-2001

Leaps and Bounds was a chain of indoor play-places that was started by McDonald's in 1991. The main attraction was a tube maze complex with ball pits. They hosted children's birthday parties where pizza and cake were served. There were arcade-style games that awarded tickets for cheap prizes.

Leaps and Bounds had a design of two tubes with a block and circle in the middle on the front of the building to resemble the tube maze the play-place had featured. "Play with Purpose" was their slogan. It merged with competitor Discovery Zone in 1995, whose assets were later bought out by Chuck E. Cheese in 1999.