Sunday, December 22, 2024

Darlinghurst Theatre goes into administration owing ticket holders

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Farmer declined to comment, directing questions to the administrators.

Administrator BRI Ferrier principal John Keenan said he had suspended shows while he seeks to recapitalise and restructure the theatre company so it can resume operating.

Keenan said it appeared that cost-of-living pressures had reduced demand for tickets to the company’s shows.

“The effect of that has been a reduction in revenues and donor support and resulted in acute financial issues,” he said.

Keenan said the company “probably needs a few hundred thousand dollars”, which he said was modest compared to other troubled businesses he has dealt with.

He said ticket holders should try to get repaid via a chargeback through their credit card provider.

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The company bills itself as creating culturally diverse, socially driven works such as Overflow, which is set in a nightclub toilet and focuses on the fight for transgender acceptance and equality.

Financial documents lodged with the Australian Charities and Not-for-profits Commission show the charity that runs the theatre company posted a profit of $191,000 in 2023 after receiving just under $1 million in government funding.

It also received emergency funding from philanthropic sources last December and was seeking donations on social media earlier this month.

However, the company’s program did not strike a chord with audiences, with box office sales falling to $2.4 million last year from $3.3 million in 2022. There were also significant declines in bar sales and donations in 2023 compared to the previous year.

Sydney Lord Mayor Clover Moore said the council would work with the administrators to determine the company’s financial position “and consider options for the future operation of the theatre once we have more information”.

“This comes at a tough time for the creative sector, as the costs of operating rise, and many organisations continue to struggle to recover from the impact of the pandemic,” Moore said.

A Create NSW spokesman said it was always concerning when a cultural organisation goes into administration, but the NSW government will not rescue the theatre company.

“At this stage, the government has no plans to provide additional support to the business,” he said.

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