Cirque du Soleil, also known as « Circo del Sol », is recognized worldwide for its large number of acrobatic shows in Las Vegas, United States. Unfortunately, in the last hours, he declared in bankruptcy.
In its announcement Monday, the Montreal-based company blamed its bankruptcy on the « immense disruption and forced closure of shows as a result of the covid-19 pandemic. » Many fans were stunned, however, it is a reality that affects most companies and ventures.
Cirque du Soleil, bankrupt by the current context. The « Circo del Sol » asked for help from the Canadian government and private capital. Cirque du Soleil.
In this way, it seeks to restructure its debt with Canadian government aid. It also submitted an initial offer from its largest sponsors, including a combination of multinational private equity firms from the United States, China and Canada.
That $ 420 million offer is intended to be a starting point in an auction to attract other stakeholders. On the other hand, the company also received $ 300 million in new funds to « support a successful restart, provide relief to affected Cirque du Soleil employees and partners, and take on certain of the company’s outstanding obligations, » according to the statement.
The « Circo del Sol » asked for help from the Canadian government and private capital. Cirque du Soleil.
The statement comes three months after Cirque du Soleil temporarily suspended production of its shows, including six in Las Vegas. It also has around 10 exhibits on tour around the world, including « O », « Michael Jackson One » and « The Beatles LOVE ».
The « Circo del Sol » is drowning in almost $ 1 billion of debtAccording to multiple reports, an unsustainable situation as its productions remain suspended. The consequence? Cirque has fired approximately 3,500 employees.
Cirque du Soleil.
« 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 statement.
However, with zero revenue since the forced suspension of all our shows due to the covid-19, management had to act decisively to protect the future of the company, ”he added. Will they regain their characteristic essence?