the Canadian company Cirque du Soleil Entertainment Group, well-known worldwide for its circus show, announced the start of procedure of protection against bankruptcy.
to avoid a complete closure, the company will reduce more than 90% of its staff, or about 3.5 thousand employees. The staff in March were sent on unpaid leave during the quarantine, but now is almost entirely dismissed. As a result, the state circus will remain 213 people. For dismissed employees, it is planned to create a Fund aid in the amount of $ 15 million.
“In the last 36 years Cirque du Soleil has been a very successful and profitable organization. But zero income after the forced closure of all our shows for COVID-19, the leaders had to act decisively to protect the future of the company”, — said the head of Cirque du Soleil Daniel lamarre.
Cirque du Soleil after the restructuring, the business plans to reopen and begin hiring staff. The resident show in Las Vegas and Orlando will not be affected, noted in a statement.
Cirque du Soleil has suspended work on the 44 performances this year because of the pandemic. While the company renewed one show in China and is expecting another one in Mexico in July, said the head of Cirque du Soleil Daniel Lamar edition of the Wall Street Journal.
for the Sake of business, the company entered into an agreement with the existing shareholders — investment companies TPG, Fosun International and Caisse de depot et placement du Quebec. Investors buy part of the company in exchange for the creation of two funds in the amount of $ 20 million to assist the employees and independent contractors — 15 million and $ 5 million. The lenders that provided earlier of $ 1 billion, will receive a share in the company’s 45%.
Investors will also provide for the Cirque du Soleil about $ 300 million to service the interest on the debt and refund the audience, were not included in the presentation during the pandemi.