Just for Laughs is experiencing major financial problems, has learned The duty. The Quebec comedy giant carried out a first wave of cutbacks in December, which was followed by the departure of its main manager. Other difficult decisions could be announced in the coming days.
Company management says it is unable to comment at this time as the situation is still evolving, which suggests further important announcements. However, we confirm the dismissal, just before Christmas, of “at least” around ten employees, without specifying in which sectors they were affected.
The president and CEO of the Just for Laughs Group, Charles Décarie, also left his position after the holidays. This former manager of Cirque du Soleil took the reins of the company in 2019, a year and a half after the departure in disgrace of founder Gilbert Rozon, targeted by allegations of sexual misconduct.
The fall of the humor mogul compromised the survival of the company for a time, in addition to lastingly damaging its brand image. According to our information, potential partners are even still hesitant today to associate with the festival. Finding sponsorships sometimes proves to be a headache, which can contribute to the precarious situation in which this Quebec flagship finds itself.
Complex transition
The post-Rozon period will not have been a long, quiet river either. The businessman’s relatives, including his sisters, were removed from senior management during the group’s takeover. The new owners instilled a new corporate culture, which destabilized some long-time employees.
“You can say what you want about Gilbert Rozon, but he was creative, which is not the case with the new owners, who are only focused on profits. Internally, it was a big change in mentality,” summarizes a former employee, who preferred to remain anonymous.
The Just for Laughs Group is now 49% owned by Creative Artists Agency (CAA), formerly ICM Partners, one of the leading artist agencies in Hollywood. Bell Media and the CH Group, which manages practically all the major festivals in Montreal, share 51% of the shares.
Canadian interests thus remain in the majority in the company, which allows it to be eligible for various government assistance. The presence of a major American shareholder still made itself felt within the organization, former employees told the Duty. Some of them share the impression that Just for Laughs has been neglected in recent years in favor of its English-speaking counterpart, Just for Laughs.
“The French-speaking market, for them, is too small. It is not exportable. There is not enough money to be made,” says a major player in the Quebec comedy community.
End of galas
Last year, Just for Laughs surprised us by announcing the end of the galas, the formula that made the reputation of its festival, which has become the biggest comedy event in the world, if we include Just for Laughs. . Officially, the promoters said that the formula had exhausted itself. But many doubt that this is the only reason behind this decision. Especially since other comedy festivals, like ComediHa! in Quebec, continue to rely on televised galas.
If the Just for Laughs brand remains closely associated with the festival of the same name, which has taken place every year in Montreal since 1983, its activities are today extended to the entire entertainment industry, in French as well as in English. The Just for Laughs Group produces television shows, such as The gags, but also shows, such as those of Ève Côté, Louis T and Jean-Sébastien Girard. Added to this is Zoofest, an event dedicated to emerging humor which is held at the end of July, in parallel with the major festival at the Quartier des spectacles.
For a long time, Just for Laughs was also a management company. But this has no longer been the case since last September. Several renowned comedians who were represented by Just for Laughs had left the ship after the Rozon affair.
Event crisis
The pandemic, and the inflationary surge that followed, also hit Just for Laughs hard, like all the major players in the events industry. “I will not comment directly on the Just for Laughs case until there is an announcement. But what I can say is that the events sector is not doing well,” says Martin Roy, the president and CEO of the Regroupement des events majors internationals (REMI).
REMI urges the federal government and the City of Montreal to increase their financial support for the main festivals. Otherwise, bad news could follow one another. “With inflation, costs have sometimes increased by 30% to 35%. But sponsors and subsidies have not followed the same curve. This forces festivals to make painful choices, such as removing stages or reducing opening hours,” laments Martin Roy.