Cirque du Soleil on brink of bankruptcy, fires nearly 3,500 employees
Tuesday, 30 June 2020
Canadian circus group Cirque du Soleil has applied for protection from its creditors, it announced on Monday.
The company is in bad shape because of the coronavirus crisis.
“For the past 36 years, Cirque du Soleil has been a highly successful and profitable organisation,” said Cirque du Soleil Entertainment Group President and CEO Daniel Lamarre. “However, with zero revenues since the forced closure of all of our shows due to Covid-19, management had to act decisively to protect the Company’s future,” he added.
Furthermore, “Cirque du Soleil announced critical steps related to employees, including the termination of employment of approximately 3,480 employees previously furloughed in March following the halt in revenue caused by the government-mandated shutdowns in response to the Covid-19 pandemic,” they announced.
The circus group, which counts nearly 5,000 employees, sees this as “a necessary part of its restructuring and eventual plans to restart operations.”
By applying for protection from creditors, Cirque du Soleil hopes to be able to reschedule its debts and avoid bankruptcy.