Cirque du Soleil files for bankruptcy and cuts 3,500 jobs

Members of the cast from The Beatles' 'LOVE' by Cirque du Soleil perform at the Musi Cares Person of the Year gala honoring Paul Mc Cartney in Los Angeles Calif. on Feb. 10 2012

Current Cirque CEO Daniel Lamarre said the company will return stronger, but any transition likely won't happen until the fall.

The filing comes three months after Cirque du Soleil temporarily suspended production of its shows, including six in Las Vegas alone.

Cirque du Soleil has filed bankruptcy for bankruptcy protection in Canada, where the company has its headquarters.

The company was forced to shutdown all of its productions due to COVID-19, and it is not yet clear on what the future is of those shows, including the new show at Disney Springs - Drawn to Life.

Cirque du Soleil has today announced that it has filed for bankruptcy and will terminate 3480 employees who were previously furloughed.

As part of the proposal, economic development agency Investissement Quebec would provide $200 million in debt financing to support the proposed acquisition.

Cirque du Soleil said it had struck a deal to avoid bankruptcy under which its existing shareholders TPG, Fosun and Caisse de depot et placement du Quebec will take over the firm's liabilities and invest $300m (£244m) in the business. The investors will also set up two funds worth $20 million to offer additional relief to affected employees and independent contractors.

The company will now try to restructure while shedding about 95% of its staff.

It said it meant to rehire "a substantial majority" of terminated employees, business conditions allowing, once coronavirus-related shutdowns were lifted and operations could resume.

Cirque de Soleil performs an act at the Entertainment Quarter, Moore Park in 2019.

The Las Vegas shows that were cancelled included O at the Bellagio, KA at MGM Grand, The Beatles LOVE at the Mirage, Mystere at Treasure Island, Zumanity at New York-New York and Michael Jackson ONE at Mandalay Bay.

The cuts of 3,480 employees come from the over 4,600 individuals who were furloughed back in March, with multiple reports saying that Cirque du Soleil is almost $1 billion in debt.

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