Loading articles...

Cirque du Soleil files for creditor protection, terminates 3,480 employees

Last Updated Jun 29, 2020 at 12:42 pm MST

A man and woman walk by the Cirque du Soleil Big Top in Montreal's Old Port, on March 21, 2020. The Quebec government is green-lighting financial support of up to US$200 million for Cirque du Soleil, whose operations remain paralyzed due to the COVID-19 pandemic. THE CANADIAN PRESS/Graham Hughes
Summary

Cirque du Soleil has filed for bankruptcy protection after its shows were cancelled due to the COVID-19 pandemic

Stakeholders have a 'stalking horse' agreement to acquire the company

Cirque du Soleil also announced the termination of approximately 3,480 employees previously furloughed in March

MONTREAL (NEWS 1130) – The Cirque du Soleil, whose aerobatic shows have been halted by COVID-19, has filed for creditor protection while it develops a plan to restart its business.

The company says it will seek court protection from creditors under the Companies’ Creditors Arrangement Act at a hearing Tuesday at Quebec Superior Court.

Cirque du Soleil also announced the termination of approximately 3,480 employees previously furloughed in March.

In connection with the filing, Cirque du Soleil says it has entered into a ‘stalking horse’ purchase agreement with its existing shareholders TPG, Fosun and Caisse de depot et placement du Quebec as well as Investissement Quebec as a debt provider.

It says the sponsors’ bid includes an intent to rehire a substantial majority of the terminated employees, business conditions allowing, when its operations can resume.

The company added that given that its resident shows in Las Vegas and Orlando are expected to resume before the rest of the its shows, the artists and show staff of the resident shows division are not affected.

Editor’s note: The headline of this article has been updated to correct Cirque has filed for creditor protection.