Canadian pet-free circus known worldwide for its wonderful shows announces assisted bankruptcy.
He is about to end up run over, his mother saves himAdieu Cirque du Soleil? We'll see. For now, the world-famous Canadian pet-free circus known worldwide for its wonderful shows is announcing the assisted bankruptcy. Needless to say, the pandemic was to blame, but at least we hope to be able to restructure the debt soon: the major shareholders will inject millions of dollars of liquidity to facilitate its recovery.
Already last month we learned from the lines of the New York Times the news of its near-bankruptcy: in a few weeks, Cirque du Soleil had in fact had to suspend 44 shows in dozens of cities, leaving 95% of its employees unemployed, a little less. of 4 thousand people, resulting in one of the greatest cultural failures caused by the global health crisis.
Cirque du Soleil on the verge of bankruptcy? The coronavirus hasn't spared even the famous animal-free circus
“Over the past 36 years - says in Le Figaro Daniel Lamarre, number one of Cirque du Soleil Enetratainment Group - Cirque du Soleil has been a very successful organization. With zero revenues linked to the forced closure of all shows for Covid-19, the management has decided to act decisively to protect the future of the company ".
The circus had already come to lockdown with a lot of debt accumulated to finance a series of - difficult - acquisitions aimed at diversifying its offer. In 2017 he bought Blue Man Production, in 2018 it was the turn of the children's entertainment company VStar Entertainment Group, while just last year he added Works Enetrtainment and the troupe of magicians called Illusionists to his portfolio. When the health crisis erupted, Cirque du Soleil had six out of 44 shows globally on the Las Vegas Strip alone.
Plan
Deprived of all its financial income since mid-March, Cirque du Soleil has announced a "global plan to revive the business," which will be submitted to the Superior Court of Quebec for approval.
Driven by debt of over $ 900 million, the group filed a request for protection against its creditors under the bankruptcy law. Shareholders want to try to save what can be saved by injecting $ 300 million in cash. Should the health crisis not suffer a second wave, shareholders are hoping the money put on the table will be enough to weather the turmoil until major permanent shows in Las Vegas and Orlando resume. Part of the sum will be used to compensate ticket holders affected by the cancellation of the shows.
For fans of the world's most overwhelming circus, bankruptcy can mean the end of an era, but the most confident hope the curtain will rise again soon.
Source: Le Figaro
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