Cirque du Soleil files for bankruptcy and terminates 3480 employees

Cirque du Soleil files for bankruptcy protection as COVID19 forces circus operator to cancel shows lay off artistes

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.

The Quebec government's investment and lending arm, Investissement Quebec, is providing $200 million of the $300 million in new capital proposed by the TPG-led group.

The company says it will seek court protection from creditors under the Companies' Creditors Arrangement Act at a hearing Tuesday at Quebec Superior Court.

Cirque du Soleil has filed for bankruptcy protection Along with our filing for bankruptcy protection, we had to make the hard decision to lay off the Blue Man Group.

Canadian entertainment firm Cirque du Soleil is to cut 3,500 jobs after striking a deal to avoid bankruptcy. The filing said that the move was "in response to enormous disruption and forced show closures as a result of the COVID-19 pandemic".

The company's existing secured creditors will get $50 million of unsecured, takeback debt as well as a 45% equity stake in the restructured company. If approved, it will also seek recognition of the proceedings under Chapter 15 of US bankruptcy code as it attempts to restructure and ultimately restart its business. The company further announced that almost 3,500 employees in its worldwide workforce would be terminated, though none in its Las Vegas productions...

"For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization".

The firm had to pause production of all of its shows, including six in Las Vegas, back in March.

Those workers have now been laid off, although the company hopes that it will be temporary or until rules are relaxes to allow such shows to resume.

Along with the attempt to reduce debt via the CCAA, the company set up what's called a "stalking horse" purchase agreement, paving the way for investors to purchase the company at a reduced price.



Other news