The Byre Theatre in St Andrews is likely to go into liquidation because of cash flow problems.
Graeme Smith, a partner with accountants Henderson Loggie in Dundee, confirmed last night he had been approached by The Byre Theatre of St Andrews Ltd board on Thursday to give advice on the theatre’s financial status.
After studying the accounts, he has recommended that it go into creditors’ voluntary liquidation.
Mr Smith said he had a further meeting with the Byre’s 25, mainly part-time, staff yesterday to explain what this might mean.
A show planned for tonight, and charity dance shows in the middle of next week, will still go ahead.
After that, however, it is likely the Byre Theatre will close its doors on Thursday or Friday.
Mr Smith said: “I can confirm I have been approached to give advice which I have given.
“The directors have taken that advice and it is likely the Byre will go into liquidation within the next seven to 10 days.
“At this moment I have no official locus. But I expect to have a formal bit of paper next week.”
Byre chairman Dr Frank Quinault, said: “I, as chairman, and the entire board are extremely sorry at what is happening and I will be in a position to make a fuller statement in due course.”
It is understood the finances of the independently-run theatre have been precarious for some time, and that it has faced particularly tough financial challenges since the opening of the new Byre Theatre building, which is owned by Fife Council.
It is thought a pivotal moment came in January 2011 when the theatre appealed against the Scottish Arts Council’s decision to refuse to continue flexible funding support.
Supporters have already vowed to fight to keep the threatre open. A Save the Byre Theatre Facebook page has already attracted hundreds of supporters.
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