[ad_1]
The organizers of the prestigious Canadian festival Just for Laughs, a major gathering in Montreal where several comics have been discovered, canceled the 2024 edition and filed for bankruptcy.
Several dozen employees were also made redundant as a result of the measures, which were blamed on the double whammy of Covid and rising inflation. Multiple media reports have estimated that 75 workers, about 70% of the staff, have left. “We plan to maintain JPR’s operations, albeit in a reduced format, throughout the restructuring process,” the presenting organization, Juste pour rire Inc., said in a statement.
Events in various parts of Canada are held under the Just for Laughs banner. One in Toronto, operated by different organizers, is expected to proceed as planned in September.
JPR said it filed a notice of intent to make a proposal under Canada’s Bankruptcy and Insolvency Act. Its board of directors, “after having exhaustively considered all available alternatives, concluded that the financial situation of the organization left no option but to initiate a formal restructuring procedure,” the organization said.
Through the bankruptcy process, Just for Laughs could seek investors or an acquirer of all or part of the business.
While this summer’s festival in Montreal is a flop, organizers hope the 2025 edition can go ahead once the trade turmoil subsides.
“The decision to initiate a restructuring procedure was made after a thorough analysis of all options available to the company, taking into account its very difficult financial situation given the significant changes in our business landscape in recent years,” the statement said. .
Covid forced the festival to “effectively cease operations for two years,” the statement added, while substantial overhead costs continued. “The pandemic was followed by the inflationary times we continue to experience, meaning our cost structure increased significantly, placing unprecedented financial strains on the organization.”
Changes in the media business also influenced the bankruptcy filing. “The landscape of the media industry has changed radically in recent years,” the JPR statement noted. “Consolidation and reduced budgets at networks and streaming platforms have made television production more challenging.”
