Derby Playhouse in dire straits as financial aid denied

Published Tuesday 27 November 2007 at 13:30 by Lalayn Baluch

Leading regional theatre Derby Playhouse is in financial crisis after being refused a critical £40,000 cash advance from the city council, which was requested in an attempt to hold-off closure fears.

The venue is facing a £300,000 shortfall in expected revenue, and needs £70,000 to pull it out of immediate danger of insolvency.

Despite Arts Council England agreeing to bring forward £70,000 of the theatre’s next grant payment and offering a further £30,000 if the local authority invests in the rescue plan, Derby City Council will not commit to an early payout.

Alan Graves, the council’s cabinet member for culture, told The Stage: “I’ve known for some time now that they [Derby Playhouse] are going through some financial difficulties. We’ve been working very hard with them over the last six to eight months, and beyond that to help them with their financial restructuring.

“Unfortunately, they have not been forthcoming with all the information that we require - we haven’t had all the financial information from them. It now appears that they have instructed an insolvency expert, and I believe that they are going to become insolvent. My understanding from that person is that they require £250,000 to get over the Christmas period.”

He added that the Playhouse had failed to submit an action plan for amateur groups, which was worth £45,000 of funding.

A Playhouse spokesperson said the theatre’s board was reviewing its financial position, but was unable to comment further. However, he confirmed that venue officials blamed the financial problems on the disruption caused by the development of the surrounding Westfield shopping centre and that the ten shows staged during the building works performed below expectation.

Figures reveal an improvement since the retail development opened, with the theatre’s last show Stepping Out earning £45,000 and the Christmas production of Treasure Island on target to make up to £150,000.

Meanwhile, an ACE spokesperson added that it had provided “considerable extra financial support” for the venue and had made advanced payments on several occasions. She said: “We are continuing to talk to the board of Derby Playhouse about the future of the theatre.”

The news comes soon after Bristol Old Vic, another leading regional producing-house, was forced to go dark due to financial problems and an urgent 18-month refurbishment plan. A reopening date for that venue is yet to be set, as finances are still to be secured.