“Will Cirque du Soleil rise again?“. This is the title that more than a month ago the New York Times dedicated to the serious economic and financial difficulties of the famous show company, born in Canada in 1984 with an idea of a new and original circus that has had great success: no animals but only “stunts , dances, beautiful costumes, live music, new technologies, great scenographies and narrative finds ”, the NYT always said.
And now, on June 29, Il Cirque du Soleil has issued a statement in which it declares that it has resorted to controlled bankruptcy to restructure its debt.
“With zero revenue from the forced closure of all our shows due to COVID-19, the management had to act decisively to protect the company’s future,” said Daniel Lamarre, president and CEO of Cirque du Soleil in a statement. Entertainment Group.
Moreover, the group has been forced to suspend about 44 shows in dozens of cities since the pandemic, leaving 95% of its employees, who are almost 5,000 people, out of work. The agreement proposed by the fund that controls the Circus since 2015 when the founder Guy Laliberté had sold his shares, requires an investment of 300 million dollars from the shareholders who are TPG, Fosun and Caisse de dépôt et placement du Québec, in addition to Investissement Québec as a debt provider. In exchange for the substantial cancellation of the debt, creditors should receive 45 percent of the new company’s ownership.
The proposed bankruptcy petition will be reviewed on Tuesday, June 30, by the Quebec Superior Court.