The Just for Laughs Group (JPR) protects itself from its creditors and lays off 70% of its workforce. The festival planned for this summer is canceled as well as several shows.
The Montreal company announced this in a press release on Tuesday morning. “After considering all options, the JPR board concluded that the financial situation of the organization left no choice but to initiate restructuring proceedings,” it said.
Once these cuts are completed, Just for Laughs hopes to organize a festival in 2025.
Last week, Le Devoir revealed that JPR was in deep financial trouble and tough announcements were coming. The company had already made at least ten layoffs in December. The president and CEO of the last five years, Charles Décarie, also resigned from his position immediately. This summer, under the pretext that the formula had been exhausted, the festival announced the end of the galas, a concept that was nevertheless at the root of the success of what remains the largest comedy event in the world.
Just for Laughs announced on Tuesday morning the layoffs of 75 employees across all areas of the company, both in festival organization and in television and show production. This restructuring affects Just for Laughs as well as its English-language counterpart, Just for Laughs. The current management remains in place.
According to the daily La Presse, JPR's debts amount to around $50 million; The company would have posted a loss of $2 million in 2023.
Several comedians produced by Just for Laughs are forced to cancel their tour or find another producer. This is the case of Ève Côté, Jean-Sébastien Girard, Neev, Louis T and Mélanie Couture. They found out the news while reading the newspaper on Tuesday morning.
The musical Waitress, which was announced with great fanfare just a few months ago and starred Marie-Ève Janvier, is also canceled. The Messmer shows that were scheduled during the festival will not take place, but performances elsewhere in Quebec will continue.
Ticket holders for canceled shows can receive a refund. Anyone who purchased their ticket on the Just for Laughs website or a resale site should contact their credit card company.
Difficult economic situation
To explain its difficulties, the Just for Laughs Group officially cites the pandemic and the sharp spike in inflation that followed. “At the same time, the media industry environment has changed dramatically in recent years. “The consolidation and reduction of the budgets of broadcasters and streaming platforms has made television production more difficult,” said the short press release from Tuesday morning.
However, some point out that the company's difficulties predated the current economic context. Indeed, for many, JPR has never truly recovered from the scandal that led to the downfall of comedy mogul Gilbert Rozon in 2017. The founder of Juste pour Laughs had, because of sexual allegations, sold his company to American interests the following year for $65 million, an amount well below the value of the Quebec flagship at the time.
According to our information, the company's brand image is still affected by the Rozon affair. Several stars represented by JPR have jumped ship in recent years. In addition, companies are still reluctant to partner with the festival, which makes finding sponsors more difficult.
The Just for Laughs Group, founded in 1983, is now 51% owned by Bell and the CH Group. The American agency CAA owns 49% of the shares. Just for Laughs said Tuesday it was not impossible that all or part of the company could be sold.
” This process [de restructuration] will enable JPR to restructure its activities and seek strategic investors or buyers for all or part of its activities, with the aim of maximizing value for stakeholders and, where possible, maintaining business continuity. Activities,” it said.
Help requested
Reactions from the political community quickly followed the Just for Laughs Group's announcement on Tuesday. “Humor is an integral part of our culture and we will continue to support it. “I have asked the City of Montreal teams to contact the organization to review the planned follow-up,” Montreal Mayor Valérie Plante wrote on Twitter. For his part, Culture Minister Mathieu Lacombe praised the “rich heritage” of Just for Laughs.
For his part, the President and CEO of the Regroupement des events majors internationals (REMI), Martin Roy, directly called on the federal government to increase its aid to festivals. Otherwise, he fears, other major events could make the same decisions as Just for Laughs.
“Festivals with free programming are the epicenter of the problems we face. Even if the number of visitors increases, it doesn't matter. “Costs have exploded since the pandemic and grants and sponsorships have not increased accordingly,” explains Mr. Roy.
In Ottawa we recognize “the difficulty of the situation” in which Just for Laughs finds itself. The office of Minister of Heritage Pascale St-Onge also said it was committed to helping the festival, recalling that the Montreal event had already benefited from $5.5 million in support from the Canada Fund benefited. for the presentation of the arts during the festival period from 2020 to 2025.