University steps in to save Playhouse theatre

THE University of Derby has come to the rescue of the city's Playhouse theatre.

Vice-chancellor Professor John Coyne today revealed that the university had agreed to buy the lease for the Playhouse building.

He said amateur and professional theatre companies would be encouraged to stage productions at the theatre.

Mr Coyne said he also wanted to use the building as a "learning theatre", so that performing arts students could hone their skills.

Chairman of the Playhouse board Professor Jonathan Powers, a former pro-vice-chancellor of the University of Derby, said he was delighted with the deal, which would enable Derby Playhouse Ltd to continue.

The detail of the sale of the lease is still being finalised but, if it is completed soon, the first public performance could take place this summer.

Mr Coyne said he hoped it would be concluded quickly.

He said: "I am delighted that the university has been able to reach an agreement that can keep the Playhouse in the public domain as a valued performance space.

"It is an important cultural asset in the city and while it has been closed there has been a definite void in Derby's cultural scene."

The university would not reveal how much it would be paying for the 90-year lease but a spokesman said it was a "substantial sum".

Derby City Council said earlier this week that it had been told by Stephen Edwards, the theatre's former artistic director who controls the lease, that bidding for it stood at about £850,000 in January.

And the authority's chief executive, Ray Cowlishaw, said he was worried the building would be lost to the city if a "white knight" was not found who was willing to keep running it as a theatre.

Mr Edwards said that knight had now arrived.

"Obviously, I could have sold to a supermarket and got more money but I wanted to keep that building for theatre and for Derby," he said.

"We feel like we have got a big brother with the university and, once the deal has gone through, we will sit down to see how we can work together."

The Playhouse got into financial difficulties in late 2007 and the city council refused to advance some of its grant.

The company went into administration and later the Arts Council for England withdrew its annual funding of £750,000.

In December last year, creditors agreed to allow Mr Edwards to take a "charge" on the lease in exchange for £45,000, to cover Playhouse overheads.

The aim was to buy the company more time to find a lender to pay back creditors and get the company up and running – and, if a lender could not be found, Mr Edwards had the power to sell the lease.

The board admitted to the Evening Telegraph this week that it was struggling to find lenders in the current economic climate.

The sale of the lease will allow Mr Edwards to recoup his costs, creditors to be paid and any excess over £500,000 will be given to the company so it can continue producing theatre.

Prof Powers said the deal was good news for everyone.

He said: "This is good news for theatre, it is good news for the creditors and it is good news for Derby.

"We welcome the spirit in which the university wishes to move beyond the difficulties of the past and we look forward to opportunities for future collaboration."

City council leader Hilary Jones said: "This is fantastic news for Derby and I'm absolutely delighted that the university intends to buy Derby Playhouse. Chief executive Ray Cowlishaw has already spoken briefly to John Coyne to offer the city council's support."

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