As Cirque du Soleil’s creditors prepare to take control of the business, Quebecor offers its collaboration to revive the activities of the Quebec flagship.
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In a press release, Thursday evening, the Quebecor conglomerate confirmed that it was not going to join a bid to try to acquire the Circus. The company would rather collaborate with the buyers to “ensure the sustainability of the Circus and the continuation of its artistic success by providing it with the means for its financial success”.
At the beginning of May, Quebecor expressed its intention to participate in the rescue of Cirque du Soleil. Advanced discussions have taken place to assess the different options.
“Quebecor has had long discussions with the Houlihan Lokey Group [une banque d’investissement], the creditors’ advisers, before it was forced to put an end to it by signing, at Cirque du Soleil’s request, a confidentiality agreement, ”argued the company.
Quebecor’s decision comes the day before the Superior Court hearing, which must rule on the creditors’ offer. The latter, with the Toronto firm Catalyst in mind, agreed with Cirque du Soleil on a purchase offer. This agreement will be submitted to the court this Friday. If accepted, Cirque property would completely escape Quebec.
Cirque creditors, private investment companies, may want to enlist the expertise of a Quebec partner with in-depth knowledge of the show and entertainment field. The recovery promises to be difficult. Since the start of the pandemic, Cirque has canceled its 44 shows and has laid off some 3,480 workers.
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