FOLSOM, Calif. — SeaQuest has filed for bankruptcy.
The controversial interactive zoo/aquarium is a national chain, with its only California location in the Folsom Palladio Mall. Other locations in Texas, Virginia, Connecticut and Colorado closed in 2024. Five locations remain.
SeaQuest's bankruptcy records, filed in court in Idaho, show the company's revenue dropped by $12 million over two years - from $27.2 million in 2022 to $15.28 million in 2024.
The filing also reveals unpaid rent for their Folsom Palladio location totaling to $83,350.64 for October and November 2024. SeaQuest also owes dozens of people for unpaid wages, including multiple in the Folsom/Sacramento region, the filing revealed.
"It's absolutely horrendous to leave people who've done work for your company unpaid," said Laura Hagen, Director of Captive Wildlife of the United States Humane Society. "They have outstanding veterinary bills, they owe money to some electric suppliers, they owe money to businesses from which they've bought animals from."
SeaQuest's bankruptcy filing comes after an ABC10 investigation in collaboration with ABC News and affiliate stations KSTP and KTNV, which all reported serious issues.
For the Folsom location, 19 former employees came forward to ABC10 with allegations and records showing how SeaQuest operates - as well as photos and videos of animals there who were hurt, sick, dying or dead.
One source estimates over 1,000 animals have died in the six years since SeaQuest Folsom opened in 2018. Other former Folsom employees said animals were starved, put into too small of cages, forced to interact with customers and more. Conditions - from chipping paint to a roach infestation to high temperatures - at the Folsom location were unsafe for animals, employees and customers alike, sources told ABC10.
The U.S. Humane Society has been closely monitoring and investigating SeaQuest, Hagen said, and is not surprised by them filing for bankruptcy.
"They've made their money by torturing these animals and forcing them into dangerous public interactions with people all across the country," said Hagen. "It's not a surprise at all that they also engage in predatory business practices."
SeaQuest filed for Chapter 11 bankruptcy, which according to the U.S. Court system is also called "reorganization" bankruptcy, where the debtor remains "in possession" and may continue to operate its business.
"We know that SeaQuest has a history of leaving behind debts at other facilities, but we're really now, with this Chapter 11 filing, getting to see the full picture of how bad their financials have really been," said Hagen.
As for what's next, Hagen says the U.S. Humane Society has no expectations, but remains concerned.
"Chapter 11 bankruptcy usually means the company is intending to continue to do business," said Hagen. "Our hope would be that SeaQuest realized that this is a failing business model and they'd finally close all of their doors forever. They've already had to close numerous locations and it's just time to put this to bed. This is a cruel business model."
The bankruptcy filing is the latest development since ABC10's investigation. Immediately after airing, California Assemblymember Josh Hoover (R-Folsom) called for an investigation by the California Department of Fish and Wildlife (CDFW).
Less than two weeks after ABC10's reporting aired, CEO Vince Covino stepped down. He was replaced by SeaQuest's CFO, Aaron Neilsen - who is among those owed for unpaid wages, the bankruptcy filings revealed.
ABC10 reached out to the Folsom Palladio Mall and SeaQuest asking about their plans going forward. At our time of reporting, there's been no response from either.