Cirque du Soleil has filed for bankruptcy after having been forced to close down all the shows around the world. The company who is reportedly drowning in nearly $1 billion in debt, have laid off roughly 3,500 employees. The filing comes three months after it temporarily suspended production of its shows, including six in Las Vegas. It also has about 10 shows on tour across the world.
In an announcement, the Montreal-based company blamed its bankruptcy on the "immense disruption and forced show closures as a result of the COVID-19 pandemic" and is aiming to restructure its debt with assistance from the Canadian government and private equity firms.
"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 in a release. "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."
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.
Cirque du Soleil Entertainment Group Chief Executive Officer Daniel Lamarre discusses the future for the 36-year-old company after filing for protection from creditors in Canada on Monday.