Playhouse building unlikely to be allowed for anything but theatre council warns
EFFORTS by the board of Derby Playhouse to market its lease have prompted warnings to potential buyers from Derby City Council.
Property agent Savills is inviting expressions of interest in the theatre's lease in a bid to support the board's rescue plan.
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ASSET: Yesterday's Evening Telegraph report
That is based on the board securing a seven-figure sum for the building's lease, with £500,000 of that going to creditors.
To act as security against the rescue plan in case it fails, the board wants to effectively mortgage the theatre's lease.
That would involve an organisation agreeing to advance money to the board on the understanding that if it could not pay it back, the organisation would take control of the lease and could sell it on the open market, with creditors getting some of the cash.
Theatre chairman Professor Jonathan Powers said the lease was being marketed to give an idea of what it would be worth. But the city council said it had "grave concerns" that the board would end up defaulting on payments, meaning the building's lease could be sold off to be used as something other than a theatre.
It warned anyone interested in the lease that, as the planning authority, it would be concerned about losing a theatre.
Jonathan Guest, the council's director of regeneration and community, said: "The concern is, if the Playhouse fails and defaults on repayments, then the mortgagee can take over the building and attempt to sell it for uses other than as a theatre.
"A planning approval for change of use would need to be obtained. I am sure the council as local planning authority would be very concerned at the prospect of the city losing its theatre.
"Any aspiring mortgagee needs to be well aware of the prospect of such a change of use not being granted."
Mr Powers said he was obliged to do what was best for creditors and the Playhouse, a registered charity.
Administrators Tenon said they were waiting for firm proposals from both the Playhouse and council before writing to creditors and calling a meeting.
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by Bleeding Heart Liberal, Derby
Friday, November 21 2008, 10:09AM
“Well said, Grant. You've hit the nail on the head there: it's the people of Derby that are suffering throughout this. Derby Playhouse is for them, first and foremost. The situation for the city is beyond embarrassing. Let's get theatre back on that stage.”
by Grant, Derby
Thursday, November 20 2008, 10:15AM
“I have watched this debacle develop over the past few months with increasing dismay. Surely the time has come for the administrator to take a firm hold on this farcical sitaution. Whatever your views on the quality of the work produced at the Playhouse over the past few years, it is now failing in its remit - Derby does not have a working theatre.
The Board which took the company into administration failed. Either its members knew of the financial problems facing the company or they were not informed by the executive management - whichever it was, they didn't do their job, either by commission or omission. It is not appropriate to blame funding bodies for not coming up with money in advance, when you are already well into the red.
The executive management failed to balance the books, regardless of the all the hype we were given. I thought that they were employed, not only to produce first class theatre, but also to stabilise the financial position if the Playhouse.
It now seems that we have to stand on the sidelines while the players in this farce defend their own positions and waste time, with Derby and its theatre-going public deprived of a major venue.
None of the parties involved comes out of this particularly well, but the executive management had their opportunity and failed in a very significant element of their responsibility. In most normal operations, they would have been out of a job a long time ago.
The Board failed to get a handle on the situation.
The council (who had representation on the Board) ought to have been active in ensuring that the finances were brought under control.
The Arts Council dithered at best.
The plan put forward by Dr Powers, with the promise of £300,000 to creditors fell at the first hurdle - they finally didn't raise the money.
Assuming that there is a realistic proposal from the Council, the administrator should call time on the whole proceedings and ask the creditors to approve something which is tangible, guaranteed and can be done swiftly. There is no point in the dubious promise of jam sometime in the future, if the bread is already moldy,
The present team should bow out as gracefully as possible and let someone work on rebuilding a theatre for the community. Its time to put ego, pride and possibly even sheer bloody-mindedness aside. Derby deserves better.”
by Dave, Blackpool
Tuesday, November 18 2008, 9:50AM
“This whole lease scenario is bizarre to say the least. When I questioned Mr Powers about the £300000 offer openly on this forum he would not talk about the lease and the administrators do not believe it is an asset otherwise it would be shown on the financial reports by Tenon for creditors.
Clearly the revival production has made a loss as it failed to reach its 65% audience target and DPL cannot mount further productions. So who would invest in such a company?
The DPL board have lost sight of the fact that they are custodians of a theatre building which was created for the people of Derby when the Eagle centre was built and as such they should hand back the keys and let the council get on with providing the Derby and wider audience with productions created with an audience in mind.”
by Vixen, Derby
Monday, November 17 2008, 3:19PM
“For those of you who are stating that DCC should have stepped in to prevent this occurance, have you forgotten their bid for Derby Live to take over which was severely hindered by the objection of the die hard fans of DP.
Surely it would be better to have someone in control who is actually likely to keep the venue open and producing theatre rather than have it either a) stay closed or b) be sold to yet another superstore?
People are continually criticising the Derby Live concept without I believe really understanding it.
I have extremely strong connections to Derby Playhouse and was as upset as anyone about the current situation but I was able to see the positive effects of Derby Live taking control.
Hopefully now it has come to this those close minded individuals who objected in the first place may now realise it is the lesser of the two evils if the opportunity for them to take over presents itself again.”
by Steve, Derby
Monday, November 17 2008, 2:44PM
“As 'squandering' is a matter of perception, I don't think we're really going to agree!”