A new logo was designed and buildings were repainted, but the effort did not bring in enough of a profit, if any, to maintain the park as a viable ongoing operation.

Their reasonings included lack of profit, a steady decline of attendance, and they wanted to extend the midway for the annual Mid-South Fair which operated adjacent to the park's site for 10 days in October.

The decision to close Libertyland led to the formation of Save Libertyland!, a group formed to fight for Mid-South Fair to reopen the park, citing that the park created hundreds of jobs for Memphis-area teens and was an affordable place for families to spend time.

filed a complaint in court to block Mid-South Fair from auctioning off the rides and equipment, arguing that they were owned by the City of Memphis.

In December 2006, Joyland Inc. sent the city a letter of intent for developing a new amusement park on the Libertyland site.

The deal was to be completed on a three-year lease plan, and Joyland hoped to receive the Grand Carousel and Zippin Pippin as well.

[7] However, upon viewing the site in-person, Joyland Inc. pulled out of the deal due to extensive damage to infrastructure, including wiring and plumbing.

[8] The Grand Carousel was leased and restored by the Children's Museum of Memphis and began operating in the new pavilion in November 2017.

[citation needed] The northern tip of Libertyland was redeveloped as part of a parking lot and green space for tailgate parties known as Tiger Lane.

The 227,000 square feet (21,100 m2) sports complex can host tournaments and other events and includes two adjacent soccer fields.