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Cirque du Soleil files for bankruptcy after COVID-19 closure

Cirque du Soleil is filing for creditor protection after months of being closed due to the COVID-19 pandemic.

“For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization,” said Daniel Lamarre, president of Cirque du Soleil Entertainment Group.

“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.”

The Montreal-based entertainment company announced the news on Monday and is seeking to declare bankruptcy in Canada as well as the United States.

According to Lamarre, five to six groups are interested in acquiring the business and a new owner is expected to be announced in September.

The COVID-19 pandemic had forced the Cirque du Soleil to cancel all of its 44 shows and to lay off almost all of its staff, around 4,700 people.

In May, the Quebec government loaned the struggling Cirque $200 million as it attempted to restructure its finances.

Founder Guy Laliberte has stated he eventually hopes to buy back the businesses and keep its headquarters in Montreal.

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