In an announcement Monday, the Montreal-based firm blamed its bankruptcy on the “immense disruption and forced show closures as a result of the Covid-19 pandemic” and is aiming to restructure its debt with help from the Canadian authorities and private equity firms.

The submitting comes three months after it quickly suspended manufacturing of its reveals, together with six in Las Vegas. It additionally has about 10 reveals on tour internationally, together with “O,” “Michael Jackson One,” and “The Beatles LOVE.”

Cirque entered a “stalking horse” bid from its largest backers, together with a mixture of multinational personal fairness companies from the United States, China and Canada for $420 million. That supply is meant to be a place to begin in an public sale to attract different bidders.

The firm has additionally obtained $300 million in contemporary funding to “support a successful restart, provide relief for Cirque du Soleil’s affected employees and partners, and assume certain of the company’s outstanding liabilities,” it stated within the launch.

Cirque is drowning in practically $1 billion in debt, in line with a number of reviews. That’s changing into more and more untenable as its productions stay suspended. To assist stem the monetary loss, Cirque has laid off roughly 3,500 workers.

“For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization,” stated Daniel Lamarre, CEO of Cirque du Soleil Entertainment Group in a launch. “However, with zero revenues since the forced closure of all of our shows due to Covid-19, management had to act decisively to protect the company’s future.”

Correction: An earlier model of this story misstated the stalking horse bid quantity.

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