Discovery Zone will close some outlets

Monday, March 25, 1996 | 11:59 a.m.

Indoor playground operator Discovery Zone Inc. filed for bankruptcy protection today, saying it had expanded too fast and will close an unspecified number of money-losing stores.

The status of the company's Southern Nevada stores, which include a facility at 3165 N. Rainbow Blvd. at Cheyenne Avenue and a Henderson outlet in Green Valley, were not immediately known.

Discovery Zone said it would continue to operate and that it would use the Chapter 11 bankruptcy filing to remedy problems brought on by the rapid expansion.

A taped message at its corporate office in Fort Lauderdale, Fla., said the firm is not seeking new franchises to add to its 29 nationwide franchise locations. The company operates an additional 318 stores and bills itself as "home of the world's greatest birthday parties."

Attempts to contact the Rainbow facility were unsuccessful. Its voice mail box was full at 9 a.m. today.

An official at the New York City location, one of the largest in the chain, said the company "had no idea" at this time which of the outlets would be closed.

The company, partly owned by Viacom Inc., said Viacom Chairman Sumner Redstone and another Viacom executive have resigned from Discovery Zone's board.

"Discovery Zone is a viable concept, and we have an opportunity to revitalize our operations with new marketing programs and entertainment concepts," said Donna Moore, Discovery Zone chief executive.

Aside from closing money-losing stores, the company said it would try to negotiate cheaper leases at existing locations.

The stores include elaborate equipment to amuse youngsters, such as mazes of tubes and huge bins full of balls to gambol in.