They had been acquired a while in the past. If I had been to guess, some funding corporations used loads to purchase them out, then they transferred the debt to Cirque du Soleil. The identical factor occurred to Toys R Us.
I’m fairly assured that Man, the unique CEO and co-founder, will take his place at one level or one other as soon as the debt is liquidated within the occasion of chapter.
I don't know any monetary questions in any respect, so take my submit with a grain of salt.
The standard of the corporate and the expertise of the staff are too high-end to fade. They might not reform earlier than the COVID disaster ends, however they’ll return.
Edit: Googled some information, it appears to be like like a number of the debt is because of current acquisitions with the intention to "diversify" the corporate. Perhaps it wasn't only a leveraged buyout from Cirque du Soleil that obtained them concerned, possibly a couple of preexisting acquisitions and money owed that additionally gathered? As you would possibly count on, most likely nothing within the core enterprise was working at a loss, however proper now this core enterprise has no earnings and debt and curiosity funds proceed to spin.