Cirque du Soleil Files for Bankruptcy – Drawn to Life Delayed

This just in!

Cirque du Soleil Files for Bankruptcy - Drawn to Life Delayed 1

From reviewjournal.com – Las Vegas

Cirque du Soleil has filed for bankruptcy protection. Cirque announced Monday morning from its headquarters in Montreal it was seeking a debt restructuring protection under its home country’s Companies’ Creditors Arrangement Act (CCAA).

As expected, the company said in its filing announcement the refinancing move was “in response to immense disruption and forced show closures as a result of the COVID-19 pandemic.”

Cirque du Soleil shut down all 44 of its shows in March, laying off 95 percent of its workforce, including more than 1,300 in Las Vegas. The company further announced that nearly 3,500 employees in its international workforce would be terminated, though none in its Las Vegas productions.

The company had furloughed some 4,700 employees in March. The company states that the termination “allows employees to maximize and accelerate the financial compensation” the would receive through unemployment assistance programs.

In its restructuring, Cirque has been buoyed by a $300 million infusion from its investors (including $200 million from its own government agency, Investissement Quebec) to continue operations while productions are sidelined.

A total of $15 million is being applied to sidelined employees’ ongoing benefits coverage. Another $5 million is earmarked for payments to contractors, owed several millions since the company shut down in March.

It will take months, probably into the fall, for the company’s ownership to be established. Cirque CEO Daniel Lamarre said in Monday morning’s announcement that the company had enjoyed 36 years of success until the pandemic took hold, and needed to act “decisively” to bolster its future. The purchase agreement is to set a template for Cirque to eventually return as a stronger company.

“The robust commitment from the sponsors — which includes additional funds to support our impacted 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,” he said. “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 worldwide.”

So what does that mean for the new show at Disney Springs! Drawn to Life was to have started soft openings in March with the full debut in April. I was lucky enough to get a preview and it’s a beautiful show. Right now we are hearing that Drawn to Life will probably debut this Fall, which is good news. This is a developing story so stay tuned for more updates as we see them.

Michele
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Michele

Michele Atwood is the Owner/Editor of The Main Street Mouse and it’s subsidiaries and author of the books “Moving to Main Street U.S.A.” “How Many Sleeps Till Disney?” and “How Many Sleeps Till Disneyland?” Michele also contributes Disney news to the Joe Kelley Morning Show on 107.3 WDBO in Orlando. She and her family made the move from Michigan to the Orlando area to pursue their Disney dreams. Michele is a life long Disney fan, and has two sons who have followed suit, each going on their first Disney trip before their first birthday’s. Part of the goal Michele has for The Main Street Mouse is not only to keep members informed, but to create somewhat of a Disney Family by relating to others through personal experiences and opinions. Also, Michele is making it a priority to share stories of inspiration and hope to other Disney Fans in an effort to share the Magic and hopefully make a difference in the lives of others. ~ I enjoy writing personal perspective blogs, doing TMSM Meet Ups for our readers, and keeping the constant interaction going with others, sharing the Disney Magic to people when they can’t be at their Happy Place.

Michele has 5791 posts and counting. See all posts by Michele

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