Playhouse board offer £500,000 to creditors
DERBY Playhouse's board has made a last-ditch offer to the people to whom it owes money in a bid to save the theatre from liquidation.
It says creditors will share £500,000 pounds if its bid for compensation from Arts Council England and Derby City Council is successful.
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The board claimed the Arts Council had acted beyond its powers in February by voting to liquidate the theatre and that the city council had prevented it from staying open last November.
The allegations, which are denied, are under investigation by Government ombudsmen, who rule on complaints and can award compensation.
Board chairman Professor Jonathan Powers said the plan "hinged on the investigators' decisions" and that a combined seven-figure sum was wanted from the two authorities.
The plan also depends on whether the board is granted an extra six months to pay its creditors after failing to fulfil a previous agreement to pay them £300,000 by October 20.
Mr Powers said: "It's in the hands of the creditors as to whether they accept the deal.
"The first point is that the ombudsmen must find evidence of maladministration. If this is found I will provide a list identifying the cost of the damage that has been done."
If the complaints are unsuccessful, Mr Powers said the £500,000 would be raised by selling the Playhouse lease which is valued at "between £800,000 and £1m".
Mr Powers said: "If we don't get the compensation or a generous benefactor coming forward, we will offer up the lease. We hope we will get the money by other means, but if we don't then this is what any normal commercial organisation would do.
"And if we got the full market value then the company will also have enough working capital to be able to set up shop elsewhere."
The city council is still considering putting in an offer for the assets if the Playhouse is liquidated.
The building would then come under the control of the council, which would be able to use it to stage productions under its Derby Live scheme
Derby's Tory leader Philip Hickson, one of two councillors on the Playhouse board last year, said the authority's plan seemed the only viable option.
He said: "It's a year since the theatre looked for major investment and it's clearly not forthcoming. The latest plan shows that the board are still living on a fantasy island."
An Arts Council spokeswoman said it was dedicated to helping the Playhouse continue to produce theatre.
She said: "The plan is that the Arts Council and Derby Live will provide an interim alternative if the board's bid fails.
"We absolutely deny we acted out of our remit and believe it's inappropriate for the board to make the offer it has before any decision on their claims has been made."
Administrators Tenon Recovery said the board's new offer would be put before the creditors who would vote whether to accept.
The Playhouse went into liquidation and then administration in November last year.
25 Comments
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by Joanne, Derbys
Friday, November 07 2008, 11:17AM
“Please see further comments on "Playhouse's festive show cancelled." Cheers.”
by Interested Observer, Derby
Thursday, November 06 2008, 10:38AM
“Joanne has it escaped your notice that DPL are over £1million in debt. The programme that led to this may have been cutting edge but it was staged at a time when there was a need to cut costs and fill seats. Now tell me who was responsible.
The fact that the building is now closed and the Christmass show pulled is simply because without subsidy DPL cannot operate successfully. Did they say they could not afford to put on the show?
Do not forget either that the Arts are a discretionary spend for the local authority, the fact that they want to see the Playhouse back in public hands and are committed to the future says a lot for their future intentions.”
by richard morgan, Spondon Derby
Wednesday, November 05 2008, 11:49AM
“Joanne the vitriol you talk about is perhaps fair comment from another persons perspective. Those who hold the present regime in low esteem do not only present vitriol they also present cogent and reasoned argument . As with the supporters of Mr Powers some are more reasoned that others and if you wanted to persuade anyone to support your cause, informed dialogue is the most fruitful method of approach. As for passion, sincerity and committment if it were matched in equal part by common sense, competence and ability we would not be in this present state.”
by Chris, Derby
Wednesday, November 05 2008, 11:09AM
“I think its time that the Playhouse is pointed in the direction of Dignitas, as this has gone on long enough.”
by Joanne, Derbys
Wednesday, November 05 2008, 10:44AM
“I have just read some of these comments, as I was out yesterday, and will be today.
What a pool of vitriole and ill informed comments!!
I sincerely hope the Derby public will hear the FULL FACTS before long, which speak far louder than a handful
of negative bloggers....
Please ask yourselves why the Playhouse finds itself in this position??
The last DCC has all the power and money, but is this the only justification for them
taking control of our theatre, and controlling the whole artistic agenda for years to come?
I have my own views and suspicions about where much of this vitriole emanates from-
but only time will tell whether
the instigators of this process
will win the whole battle.
Mr Powers and the team at the Playhouse have gone way beyond ordinary commitment
and passion for our theatre.
Do not doubt their utter sincerity
and tenacity in this fight for justice.”
by Interested Observer, Derby
Wednesday, November 05 2008, 10:02AM
“This is a farse and no mistake. Just what is Prof. Powers and his team up to - delaying tactics maybe?
For what?
Could somebody remind him that he is not in the commercial world but a trustee of a limited company with charitable status. Has anybody checked the constitution of DPL? I am not sure but I doubt if it was ever envisaged that the Board would ever sell the lease.
It would be reasonable to suggest the Playhouse was built for the benefit of the people of Derby and not the plaything of a select group who want to take their bat and ball home because they are not winning.
I only hope Tenon now do what they are bound to do in the circumstances and that the creditors call time on this sorry affair.
Give the Playhouse back to the people.”
by John, Spondon
Tuesday, November 04 2008, 2:25PM
“I've no axe to grind either way, but there are two things I would like to say.
1. I went to see "Spirit of the Dance" at the Assenbly Rooms. It was a good show, but it would have been far better on the stage of the Playhouse.
2. I would like to see a purpose built small theatre of about 200 seats for the use of the Amateur groups. This way each group would be able to produce a play or whatever and show it at the theatre with a change of programme say every two weeks, The audience would be drawn from the whole of the Derby area due to the central position of the venue. Folk could then go along to see a play every week or so, and the groups would have a first class theatre to perform in.”
by andy, derby
Tuesday, November 04 2008, 1:56PM
“As a typical derby resident I've NEVER had the inclination to see anything that the Playhouse has to offer as shows are always aimed at the prawn/cucumber sandwich bragade! Its obvious that people who've been running the Playhouse don't know what they're doing or what their target audience is.
If derby city council want to pay me £30k i'll take charge of the place. I dont know a massive amount about running a theatre but i know i can do a much better job than this current rabble.
( or just sell the lot to Westfield and restore the hippo with the cash).”
by Fed Up!, Derby
Tuesday, November 04 2008, 1:39PM
“But sadly you have offended me Joyce, whether you meant to or not. Derby Playhouse is NOT the 'only' theatre and as audience figures show, the public, in general do not beleive it to be the 'Best' either. The problem isn't the theatre or the majority of people who work there (many who have been or are friends of mine). The problem is DPL. I even beleive Prof. Powers thinks he is doing the right thing. But he is misguided, naive even and this is what I, and many, many people like me think. Sorry that doesn't match with your own feelings but you will have to accept it as what I beleive. I am fed up because the shambles has been going on for over 5 years now and enough is really enough.”
by Joyce, Eastwood, Notts
Tuesday, November 04 2008, 1:21PM
“I expected bad reactions to my comments....its become a way of life for those of us who arent inteluctual (Sorry spellings not my forte) as one of you has pointed out...
still this isnt a spelling lesson, its someone's "right" to say whats on their heart, it may make no sense to any of you at all, but then you may not have a heart for theatre...which is indeed very sad....
You can sling as much muck as you like, but Im not ALONE in my love for the Playhouse...ask the people who responded to the call of HELP this time last year....
I cannott beleive these people have changed their minds and dont miss coming to be entertained at the BEST theatre in Derby....
maybe some might feel like joining me and standing up for Playhouse instead of making out no-one cares...we DO CARE !!!!
This controvesy is sure to run and run...while those who want the DCC to get on board and use the theatre maybe once a month, if youre lucky....
Please excuse any spelling mistakes....My point isnt about who can spell the best, its about caring and sharing real entertainment....
I wouldnt dream of offending you "Fed up" of Derby....
why are you fed up ? Joyce.”