Cirque du Soleil, the producer of acrobatic entertainment shows, is filing for bankruptcy after the effects of coronavirus.
On Monday, the company announced it is seeking to restructure its debt with help from the Canadian government and private equity firms, reports CNN.
Cirque blamed the bankruptcy on the “immense disruption and forced show closures as a result of the Covid-19 pandemic.”
The movie comes three months after the company suspended the production of its shows in wake of the outbreak. These included six in Vegas.
According to multiple reports, the company is currently about $1 billion in debt, a staggering amount given the suspension of its productions.
To offset the financial impact, Cirque laid off about 3,500 employees.
In the release announcing the filing, Cirque said it received $300 million in a new round of funding meant 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.”
"For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization," said Daniel Lamarre, CEO of Cirque du Soleil Entertainment Group, in a release. "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."