Canada’s Cirque du Soleil Entertainment Group filed for bankruptcy protection yesterday as COVID-19 pandemic coerced the popular circus operator to cancel shows and sack its artistes.
The Montreal-based entertainment company that normally performs six shows in Las Vegas has experienced difficulties in keeping its business running due to coronavirus restrictions that commenced in March. This has forced the company to lay off about 95 percent of its workers and temporarily cancelled its shows.
While talking about the development, the Chief Executive Officer of the company, Daniel Lamarre said: “With zero revenue since the forced closure of all of our shows due to COVID-19, the management had to act decisively to protect the company’s future.”
The company has entered into an agreement with its investors’ private equity fund TPG Capital, Fosun International Ltd of China, and Canadian pension fund Caisse de depot et placement du Quebec under which the group is expected to take over Cirque’s liabilities and invest $300m to financially support a restart.
Government body, Investissement Quebec will provide debt financing of $200m as part of the investment.
