Cirque du Soleil announced on Monday it is filing for bankruptcy protection and cutting thousands of jobs as the world's most famous circus troupe seeks to survive the coronavirus pandemic.

Struggling with a debt of more than $1 billion, the Canadian group said its application would be heard by the Superior Court of Quebec on Tuesday. If granted, the Canadian company will then seek bankruptcy protection in the US.

In a statement, Cirque du Soleil said it has entered into a purchase agreement with its current shareholders, including a mix of investors from the US, Canada and China.

It will immediately lay off 3,480 workers who had previously been furloughed.

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

"I look forward to rebuilding our operations and coming together to once again create the magical spectacle that is Cirque du Soleil for our millions of fans worldwide."

Founded in 1984, Cirque du Soleil has set up big tops in more than 300 cities around the world, delighting audiences with contemporary circus acts set to music but without the usual trappings of lions, elephants and bears.