Cirque Du Soleil goes bankrupt. 3,480 employees were laid off – International

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Cirque du Solei, a multinational company based in Montreal, Canada announced this Monday, June 29, that it has filed for insolvency, caused by the “huge interruption and forced closure of exhibitions as a result of the COVID-19 pandemic” and which aims to restructure the debt with the Canadian government and private equity firms.

The bankruptcy filing comes after Cirque du Soleil suspended production of the shows three months ago – six in Las Vegas, in the United States, and another ten around the world.

The debt, according to CNN, will be about one billion dollars (890 million euros), which would have led to the dismissal of about 3,480 employees of the company, already in March.

“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. “However, with zero revenue since the forced closure of all of our shows due to covid-19, management had to act quickly to protect the company’s future.”

According to the agency France-Presse, Cirque du Soleil will have requested the protection of the courts against its creditors, with the purpose of restructuring itself, following these losses and which should be evaluated this Tuesday, June 20, by Quebec Superior Court.

At the same time, Cirque du Soleil has also closed an agreement for its purchase by US funds TGP, the Chinese Fosun, and Caisse de Dépôt et Placement du Québec, its current shareholders, intending its auction.

If the protection request is approved by the Court, the multinational will request immediate provisional recognition in the United States. “This allows people who want to take over the company to move forward,” explained Daniel Lamarre, executive director of the Cirque du Soleil Group, who says that between five and six business groups will be interested. Current shareholders, with the help of Investissement Québec, will also be able to come up with a proposal for the purchase.

“So I can guarantee Cirque’s future today, because they [os acionistas] pledged to reinvest 300 million US dollars [cerca de 265 milhões de euros] to ensure the company’s survival. ”

The contract with TGG, Fosun and Caisse de Dépôt et Placement ddu Québec provides for the purchase of the majority of the assets of the Cirque du Soleil Group in cash and in debt. At the same time, the creation of two funds totaling US $ 20 million is on the table, whose objective is to provide assistance to employees affected by the pandemic, as well as independent entrepreneurs.



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