Cirque du Soleil Files for Bankruptcy Protection, Disney’s “Drawn to Life” Could Debut in 2021 Despite It

Cirque du Soleil Entertainment Group is filing for bankruptcy protection.

Well, yesterday was a sad day for Cirque du Soleil fans. As Cirque du Soleil Entertainment Group announced it was filing for bankruptcy. The company blamed its bankruptcy on the COVID-19 pandemic. Which created the disruption to Cirque’s business. The bankruptcy filing comes three months after Cirque du Soleil temporarily suspended the production of all its shows.

Cirque du Soleil is looking to restructure with the help of the Canadian government and various private equity groups. As part of Cirque’s restructuring, the company cut 3,480 jobs. Cirque has received $300 million in fresh funding from TPG Capital, China-based Fosun, and Canadian pension fund manager Caisse de dépôt et placement for a successful restart, but the company is currently drowning in $1 billion in debt.

“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 press 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.”

Cirque du Soleil shows include Michael Jackson ONE, O, KÀ, The Beatles LOVE, and the upcoming collaboration with Disney and La Nouba replacement Drawn to Life.

In a statement to the Orlando Sentinel, Cirque du Soleil indicated that the new production coming to Disney Springs could still debut this fall. Drawn to Life was originally supposed to premiere on April 17, 2020, before the world went into a global pandemic.

Cirque du Soleil Spokesperson Mélanie Fontaine told the Orlando Sentinel in a statement said, “Employees for ‘Drawn to Life’ .. are being kept on temporary leave for the time being to ensure a swift and efficient return as soon as the ban on gatherings is lifted and show operations can resume.”

Now that fall premiere date for Drawn to Life looks less likely as Daniel Lamarre, CEO of Cirque du Soleil Entertainment Group spoke to CNBC about Cirque du Soleil and said that the company was eyeing 2021 for a return to shows. Lamarre’s focus was on Las Vegas productions but he also acknowledges how it will benefit the Orlando crew too.

Despite the bankruptcy, it looks like Cirque du Soleil will restart in 2021. It’s important to note that it will take Cirque at least two years to reach pre-pandemic profitability. The company would also have to run shows at 50% capacity to make at least a little bit of profit.

This is big news for the Disney Springs Cirque du Soleil show Drawn to Life as that show was supposed to debut in April, and now it looks like the show may not premiere until 2021 at this rate.

Zach Perilstein is the Editor-in-Chief of the Boardwalk Times