Cirque du Soleil Reported of Threat of Bankruptcy because of Pandemic
OREANDA-NEWS. The world famous Cirque du Soleil and its subsidiaries filed for protection from creditors with the Superior Court of Quebec (Canada). This was reported by the company in a press release.
“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,” Daniel Lamarre, President and CEO of Cirque du Soleil Entertainment Group, said.
The company’s problems are associated with quarantine restrictions and the widespread cancellation of tours. To exclude the possibility of bankruptcy, it had to restructure business. Financial support will be provided by American investment company TPG, the Chinese financial and industrial conglomerate Fosun, and Canada’s second largest pension fund Caisse de depot et Place du Quebec, the main investors which have controlled Cirque du Soleil since 2015.
Despite this, the circus will have to carry out mass reductions. In total, it is planned to discharge 3,480 employees and pay them compensation from a specially created fund. In future, when the epidemiological situation will improve and tours will resume, the company plans to take all of them back.
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