Cirque du Soleil Files for Bankruptcy due to COVID-19
The Montreal-based company made the announcement earlier today blaming 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.
Cirque Du Soleil suspended the Disney Springs’ “Drawn To Life” back in March along with their other shows around the globe while laying off 95% of their workforce.
Cirque entered a “stalking horse” bid from its largest backers, including a mix of multinational private equity firms from the United States, China and Canada for $20 million. That offer is intended to be a starting point in an auction to draw other bidders.
As part of the investment, government body Investissement Québec will provide $200 million in debt financing.
“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,” President and CEO of Cirque du Soleil Entertainment Group Daniel Lamarre said.
The company said in a release The Land of Fantasy show will continue in China, but all other performances at other locations will be rescheduled including Cirque du Soleil’s Drawn to Life show at Disney Springs.
“Performances will resume once the pandemic is under control, pending an easing in government lockdowns and travel restrictions, and in accordance with the new corporate structure in place,” a spokesperson said.