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The Leicester Haymarket Theatre, which is currently facing debts of around £450,000, is to close its building to the public while attempts are made to resolve its financial problems. A programme of financial recovery and reorganisation is planned, supported by Arts Council England (ACE) and Leicester City Council, and the Theatre aims to reopen for public performances in 2004. ACE has accepted the Board?s decision to close, and indicated that the solution to the financial difficulties is ?likely to mean radical and painful change?. It has also admitted that the theatre will need a one-off investment to meet the costs of change and to enable it to survive as a cultural facility for the region.

The Haymarket?s financial crisis has been precipitated by the recent withdrawal of £100,000 funding by Leicestershire County Council; but prior to that the organisation was already suffering from the financial impact of strike action taken the previous year by members of the Broadcasting, Entertainment, Cinema and Theatre Union (BECTU) which represents backstage staff. Around 75 of a total of 80 staff are now expected to be made redundant, and a 60-day consultation period with staff and union representatives is now in progress. The current programme of plays and activity will continue as advertised until the end of July. After this, a reduced core staff will operate from the Theatre to develop new projects, deliver schools and community projects, and to start to implement a new five-year business plan. The plan outlines the artistic vision and operational plans for a future which will involve the organisation moving to the new building in 2006.

Leicester City Council has described the Theatre?s decision to close as ?both prudent and necessary?, and indicated that it will back the Theatre?s efforts to regain a sound financial footing in advance of the organisation?s move into a new multi-million pound performing arts centre, which will be at the heart of a new cultural quarter in the city. In consultation with both the Haymarket and Phoenix Arts Centre, the Council has appointed Rafael Viñoly Architects to design the building. A glass-fronted building will feature two auditoria with seating for 350 and 750 people. The stage will be placed in the centre of the building at street level, enabling people to look in from outside the building to see sets being built and other backstage activities. The building will also provide production workshop space, room for community and education work, and rehearsal rooms and facilities.