Money-losing Fireworks Entertainment has a new leader,following the departure Monday of founding president and CEO Jay Firestone fromparent company CanWest Global Communications.

CanWest has invested considerably more than $100m in thefilm and television production company since acquiring it in 1998. Firestone'sfive-year contract was up for renewal on May 4, 2003. It was not renewed.

Change was in the air late lastmonth when the Canadian media company released second quarter resultsspotlighting Fireworks' woes. Revenue was off 14% to C$35m from the samequarter last year.

CanWest spokesperson Geoffrey Elliot told Screen Daily that Fireworks has been operating for the past 18months in difficult markets.

In financial statements, CanWest president and CEO Leonard Aspercommented that the company was not generating the anticipated return oninvestment.

Elliot reiterated that CanWest had no intention of funding Fireworksbeyond 2003, having already shifted the financial burden to a $110m credit facility from CoAmerica. "It will not henceforth be a drain on corporate cash."

CanWest itself is heavily indebted, having purchased theSoutham newspaper chain and the National Post newspaper. Analysts' consensus is that Fireworks was the weakest linkin CanWest's fraying convergence goals.

A one-time vice-chairman of pre-merger AllianceCommunications, Firestone founded Fireworks shortly after his departure fromthe company in 1995.

The firm initially specialized in genre TV production beforeit was acquired by Winnipeg-based CanWest in the heady early days of theconvergence theory. The company expanded into feature film production anddistribution, opening offices in LA and London, but with little breakoutsuccess. Among its investments have been 1999's Onegin, 2000's Rules Of Engagement, 2001's Rat Race and the 2002 bomb Who Is Cletis Tout'

In addition, Fireworks is involved in New York-based IDPDistribution, a partnership with Samuel Goldwyn Films and Carl Icahn'sStratosphere Entertainment.

Taking the reins as Fireworks president and CEO is GerryNoble, a CanWest veteran who previously held the position of president and CEOof the company's Canadian television operations, Global Television Network.

In a statement, Asper said Noble's mandate is to re-focusthe strategic direction of Fireworks to "take account of changing patterns inworldwide content distribution markets."

The emphasis will be on working with CanWest's Canadiantelevision operations to create content. Mention of feature film production wasconspicuous in its absence.

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