Cirque du Soleil Files For Bankruptcy

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Today the Montreal based Cirque du Soleil company has just filed for bankruptcy after the COVID-19 pandemic has forced their shows to be shut down in March when they furloughed about 4,700 employees.

In their announcement they has stated the filing was due to “immense disruption and forced show closures as a result of the Covid-19 pandemic.” They are trying to restructure the company debt, which is about $1 billion. They are also looking for assistance from the  Canadian government and “private equity firms.”

According to CNN Business:

Cirque entered a “stalking horse” bid from its largest backers, including a mix of multinational private equity firms from the United States, China and Canada for $420 million. That offer is intended to be a starting point in an auction to draw other bidders.

The company has also received $300 million in fresh funding to “support a successful restart, provide relief for Cirque du Soleil’s affected employees and partners, and assume certain of the company’s outstanding liabilities,” it said in the release.

Daniel Lamarre, CEO of Cirque du Soleil Entertainment Group made this statement:

“For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization. However, with zero revenues since the forced closure of all of our shows due to COVID-19, management had to act decisively to protect the Company’s future.”

Some hope was given by President of Entertainment & Sports, MGM Resorts, George Kliavkoff.  According to CNN he apparently released a company memo that contained the following:

“Impacted Cirque employees have received notification and information directly from Cirque about their options. At present, we do not believe Cirque’s filing will impact our ability to restart our shows when appropriate and call you back to work. However, the decision to reinstate entertainment at our properties will continue to be driven by health and safety mandates and guidelines established by government agencies and by business demand.”

So as venues are allowed to reopen performers could be called back to work.

Hopefully they can resolve the situation, but post COVID-19 might look significantly different for a lot of businesses and companies. I’m not sure how this will impact individual Cirque du Soleil theaters, like the one in Disney Springs.

What do you think? Comment and let us know.

Source: CNN


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