Cirque du Soleil

History

2020

The company transferred business to creditors and avoided bankruptcy

In November, 2020 it became known that Cirque du Soleil sold business to creditors and avoided bankruptcy.

The statement for bankruptcy and reduction of 90% of the state because of COVID-19 pandemic

At the end of June, 2020 the Cirque du Soleil company submitted the application for bankruptcy and announced reduction of 90% of the state. As a result of restructuring the organizer of circus shows will dismiss nearly 3500 employees.

Work on 44 settings of Cirque du Soleil was interrupted in the spring of 2020 because of COVID-19 coronavirus pandemic. In March the staff of the company was sent on an unpaid leave.

The coronavirus killed circus. Cirque du Soleil gave on bankruptcy and reduces 90% of the staff

Within the last 36 years Cirque du Soleil was very successful and profitable organization. However with zero income after forced closing of all our shows because of COVID-19; the management had to act resolutely to protect the future of the company  — the president and the chief executive of Cirque du Soleil Entertainment Group Danijel Lamar said.

For the sake of business rescue the company signed the agreement with the acting shareholders — TPG, Fosun International and Caisse de depot et placement du Quebec investment companies.  Investors will purchase a part of the company in exchange for creation of two funds in the amount of $20 million for the employees assistance and to independent contractors — $15 million and $5 million. The creditors who provided  before the company of $1 billion will receive a share in the company the size of 45%.

In total this group of investors will invest $300 million in the company to help Cirque du Soleil to pay off the employees, contractors and clients who purchased tickets for a show which were cancelled afterwards because of COVID-19 pandemic. The government of the Canadian province of Quebec suggested to take $200 million more on credit.

By data Bloomberg, by the end of June, 2020 of Cirque du Soleil  saved up about $1.6 billion dollars. The founder of the company Gui Laliberte in May, 2020 said that he will try to redeem troupe and also to save a team of managers and the headquarters in Montreal.^[1]

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