Cirque du Soleil hopes to resume live shows next spring after emerging from bankruptcy

Cirque du Soleil Entertainment Group plans to restart its shows as early as next spring as it tries to rebuild a business shattered by the coronavirus pandemic.

The famous circus troupe confirmed on Tuesday that the sale to Catalyst Capital and a group of about 15 other senior creditors has been completed and has emerged from bankruptcy protection. Daniel Lamarre will continue to lead the company as president and chief executive officer under a revamped board of directors, while Cirque’s headquarters will remain in Montreal.

“Depending on the width of the [COVID-19 vaccine] distribution will, I hope to open some shows in late spring or early summer for Las Vegas and Orlando, “Lamarre said in an interview, calling these live shows the key to short-term profitability.” So 2021 is a year of relaunch. … By 2022 I hope to return to profitability and get back on track “.

Cirque filed for creditor protection on June 30 in Canada and shortly thereafter in the United States after revenue dropped to near zero in the spring. The company, which depends on large crowds who often pay large sums to watch its live acrobatic shows, closed 44 productions and fired 4,679 employees on March 19 to comply with government-imposed bans on public gatherings.

Five months later, the entertainment giant is controlled by its creditors, who bought Cirque in a transaction worth about $ 1.2 billion, including a $ 375 million injection of new money and the elimination of about $ 900 million in debt. Quebec’s economy minister called the result “sad” and said Catalyst “is not aligned” with the government’s interests, reflecting his unease with how things have turned out for one of the province’s leading cultural institutions.

But Mr. Lamarre was optimistic about Cirque’s prospects. He said the new owners believe in the brand and are committed to making it work. A successful renaissance hinges on two main strategies, the CEO said: building on its presence in Las Vegas and launching new digital products that can be monetized.

First, the company is upping its bet on Las Vegas, where it has permanent shows. During the coronavirus crisis, Cirque management signed commitments to extend existing performance contracts for an additional nine years with casino operator MGM Resorts and another 10 years with Phil Ruffin’s Treasure Island hotel and casino. Lamarre said.

Cirque’s new co-chair Jim Murren is a former CEO of MGM and will play a key role as Cirque deepens its presence and relationships in the city. Prior to the pandemic, the company counted on its partnership with MGM for approximately 35% of its annual revenue of $ 950 million, according to an estimate by Moody’s Investors Service.

Second, Cirque will introduce a new digital offering, Lamarre said. Catalyst CEO and partner Gabriel de Alba, Cirque’s other new co-chair, will bring his entertainment knowledge and contacts into this endeavor, the CEO said.

Cirque has been testing several digital content concepts over the past few weeks, including her acrobats giving fitness advice and her artists providing makeup application advice. “I think it’s limitless in terms of what we can have in terms of content,” Lamarre said. “But we just have to understand better what consumers are looking for” and what they are willing to pay.