The iconic Las Vegas production company Cirque du Soleil has now applied bankruptcy protection, while at the same time placing 3,500 of its existing employees. The filing came “in response to immense disruption and forced shutdowns of shows following the COVID-19[female[feminine pandemic. “Production was forced to shut down its 44 shows earlier this year due to the ongoing pandemic, due to lay off 95 percent of employees at the same time, 1,300 of whom were part of Las Vegas operations, and in leave about 4,700 other staff.
Cirque du Soleil has now received US $ 300 million from its investors, including US $ 200 million from its government agency Investissement Québec to keep its operations afloat during the restructuring. US $ 15 million will be used for employee benefits for sidelined employees, while an additional US $ 5 million is expected to be used to reimburse contractors. Its US $ 900 million indebtedness to creditors has been reduced but has also put in place a purchase agreement with the company’s current investors.
“The strong commitment of sponsors, which includes additional funds to support our affected employees, contractors and critical partners, all of whom are important to Cirque’s return, reflects our mutual belief in the power and long-term potential of our brand. », Declared Daniel Lamarre, CEO of Cirque du Soleil. “I look forward to rebuilding our operations and coming together to once again create the magical spectacle that is Cirque du Soleil for our millions of fans around the world. ”
In other business related news, Under Armor seeks to terminate $ 280million deal with UCLA.