Cirque du Soleil, best known for its mesmerizing shows that fuse stunts with performing art, filed for bankruptcy on Monday as the coronavirus continues to devastate the entertainment and theater industries.
“For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization,” said Daniel Lamarre, president and CEO of Cirque du Soleil Entertainment Group, in a press release. “However, with zero revenue since the forced closure of all of our shows due to COVID-19, management had to act decisively to protect the future of the Company.”
Canada-based Cirque du Soleil seeks Chapter 15 bankruptcy protection in the United States to facilitate a “stalking horse” purchase agreement negotiated with its existing shareholders in an attempt to attract more investment.
The company will also create a $ 15 million employee fund to provide financial assistance to the nearly 3,500 employees who have been laid off.
Like live production companies across the country, Cirque du Soleil’s revenue stream stopped when states issued orders to stay home to stop the spread of the coronavirus. The company suspended many of its global shows in March before announcing the temporary suspension of its Las Vegas resident shows.
The Cirque du Soleil bankruptcy announcement comes immediately after the closure of Broadway in New York City until January 3, 2021 as hopes for a swift end to the spread of the virus fade.
“The Broadway experience can be deeply personal, but it is also crucial, communal,” said Thomas Schumacher, chairman of the board of directors of The Broadway League, in a press release. “The alchemy of 1,000 strangers joins a single audience feeding each artist on stage and behind the scenes it will be possible again when Broadway theaters can safely house entire houses.”
Broadway theaters now offer refunds and exchanges for purchased tickets for all performances through Jan. 3, 2021. The organization said it is exploring how it can safely reopen theaters, including presenting evidence and tests from employees and guests. , cleaning and disinfection, markers inside theaters. to promote social distancing and protocols behind the scenes.
The loss of economic activity with closed Broadway productions could be devastating for New York City. Broadway contributes $ 14.7 billion in addition to ticket sales and supports 96,900 local jobs, according to 2019 statistics from The Broadway League.
Attendance at Broadway in the 2018-2019 season reached more than 14 million and raised $ 1.83 billion, he reported.
The entertainment economies of Las Vegas and New York City depend on travel. Approximately 16 million people traveled through Las Vegas McCarran International Airport between January and April last year, according to airport statistics. Only around 10 million people have traveled through the airport during the same period this year. According to the latest statistics, international and domestic traffic to the airport in New York decreased by approximately 40 percent in April.
“We are determined to bring back the people who trust this industry for their livelihood, and welcome all who love this vital part of New York City as soon as it is safe to do so,” said Charlotte St. Martin, president of the Broadway League.
Broadway productions are expected to return on a series of successive dates in early 2021. Tickets for performances for the upcoming winter and spring season are expected to go on sale in the coming weeks, according to The Broadway League.
