'Cirque du Soleil' - a Canadian entertainment enterprise and circus producer will be laying off 3,500 employees to avoid bankruptcy owing to the novel coronavirus pandemic. The famed circus operator has filed for 'bankruptcy protection' to safeguard the company's future.
The COVID-19 impact is such that, the entertainment group is forced to retrench 95% of its workforce and suspend all its shows, while focusing on restructuring.
Confirming the same, Chief Executive Officer, Daniel Lamarre said, "With zero revenue since the forced closure of all of our shows due to COVID-19, the management had to act decisively to protect the company's future."
The firm has struggled to keep the business going, including six shows in Las Vegas, owing to COVID-19 lockdown restrictions that began in March.
The company has entered into an agreement with its shareholders TPG Capital, Canadian pension fund CDPQ and China's Fosun International Ltd., who will take over Cirque's liabilities and invest $300m to help restructure the business.
The investors will also be setting aside $20m to provide required relief to the affected employees and contractors, as per the sources.