Wellington theatre cuts jobs, cancels shows

Wellington's Downstage Theatre has axed staff and cancelled performances for the rest of the year as it faces serious financial trouble.
The iconic theatre - New Zealand's oldest - recently revealed on its website that several of its 10 staff will lose their jobs. The website read "regretfully several staff whose jobs depend on the cycle of productions through the theatre have had their positions disestablished.
"However, continuing with full staff was unsustainable under present circumstances.
"Downstage is providing them with assistance and support in their search for further employment."
The theatre has postponed or cancelled all shows set to run from the beginning of October.
The shows scrapped include Kiwi play 'The Intricate Art of Actually Caring' - which was to run during the Rugby World Cup - and the large-scale Kiwi musical 'Raising the Titanics'.
In a statement issued today Downstage Chief Executive and Director Hilary Beaton said "we expect to re-launch in April 2012, following the International Festival of the Arts."
Beaton added "the decision to reduce this year's programme has been carefully considered, as we recognise the impact this will have on our staff, audiences, sponsors, presenting partners, and suppliers. We're grateful to have their support, as well as that of Creative New Zealand, Wellington City Council, Hannah Playhouse Trust, and Downstage Theatre Society."
Beaton said this year had been a "perfect storm" of challenges for the company, adding "while 2011 has seen remarkable artistic success, we have not met a number of targets in a very tough economic climate."
In her earlier email Beaton said the theatre was run to insulate theatre companies that it worked with from any box office risk. In this communication she stated "in an extraordinarily challenging year, that burden grew to the point where we ourselves became vulnerable."
The decision to can the shows came after Creative New Zealand increased the Downstage's annual funding by $25,000, to $325,000. At the time, the theatre said the funding increase was an endorsement of how Downstage had changed how it was run since 2008.
The changes came after earlier financial problems. In 2007 Downstage had to ask Creative NZ for an emergency advance of $117,000 to cover wages and pay creditors. It also used to receive more funding, including $500,000 in 2008 and $375,000 in 2009.
Downstage made a small surplus last year of $8,909 after a $35,374 loss in 2009. But its total operating revenue last year dropped by 6% from 2009.

http://www.downstage.co.nz/