In its announcement Monday, the Montreal-based company blamed its bankruptcy on the “immense disruption and forced closure of shows as a result of the covid-19 pandemic,” and seeks to restructure its debt with help from the Canadian government and private equity firms.
The statement comes three months after Cirque du Soleil temporarily suspended production of its shows, including six in Las Vegas. It also has around 10 exhibits on tour around the world, including “O”, “Michael Jackson One” and “The Beatles LOVE”.
Cirque du Soleil presented an initial offer from its biggest sponsors, including a combination of multinational private equity firms from U.S, China and Canada for 420 million dollars. This offer is intended as a starting point in an auction to attract other interested parties.
The company also received $ 300 million in new funds to “support a successful restart, provide relief to affected Cirque du Soleil employees and partners and take on certain of the company’s outstanding obligations,” according to the statement.
The company is drowning in nearly $ 1 billion of debt, according to multiple reports. Something that has become increasingly unsustainable as its productions remain suspended. To help stop the financial loss, Cirque has laid off approximately 3,500 employees.
“For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization,” said Daniel Lamarre, CEO of Cirque du Soleil Entertainment Group, in a statement. However, with zero revenue since the forced suspension of all of our shows due to the covid-19, management had to act decisively to protect the future of the company, ”he added.
— Jose Alvarez to www.cachicha.com