To stop the financial losses, the company has already suspended over 3,500 people.
Canadian company Cirque du Soleil ("Circus of the Sun"), known around the world for its innovative circus performances, has filed for bankruptcy. The main reason for this move is the massive closure of the show due to restrictions imposed in many countries in connection with the Coronavirus pandemic.
For three months starting March 2020, all shows, including six stationary appearances in Las Vegas and 44 shows on tours around the world, were suspended. Cirque du Soleil faced significant financial difficulties, and the size of its debt forced the company to go bankrupt. Cirque du Soleil's debts are on the order of a billion dollars.
After filing for bankruptcy proceedings, Cirque du Soleil Entertainment Group intends to restructure its debt with the help of the Canadian government and private investment companies. It is also reported that the company has concluded a supervised deal with its shareholders, including American company TPG Capital and Chinese company Fosun Capital Group.
So far, according to the deal, the company has already managed to raise about $300 million in funding to ease the situation of the company and possibly reboot its operations. The agreement also includes $15 million in funding to support employees who have been suspended.
Cirque du Soleil's management intends to undertake a significant restructuring and expects to be able to stabilize the company and resume operations as a result.