Cork Opera House to close for three months in survival bid

ONE of the country’s largest theatres is to close for three months as part of a cost-cutting survival plan.

The board of Cork Opera House has also warned staff of wage cuts and redundancies if it is to survive as a viable business.

Draft accounts show it recorded a loss of roughly €300,000 for the year ended March 2010. The board has been advised it must cut costs by €500,000 from a total spend of €3.5 million last year.

Staff were told yesterday that the doors of the 1,000-seat venue will be closed from July 4 to September 29 to help stem the losses. But the theatre will have to reduce costs further through a combination of “significant payroll reductions” and redundancies.

The decisions are based on recommendations following a review of the theatre’s books by Deloitte and Touche.

The theatre’s interim executive director, Padraic Liston, who has been in place for eight days, said he supports the outcome of that review. He briefed staff yesterday afternoon.

He said the cost-saving measures are essential to address the financial situation.

“The summer is traditionally not a profitable period,” he said. “The losses would have been compounded, which led the board to take the unpalatable decision to close.”

The theatre’s 31 permanent staff will be fully briefed on the possible pay cuts and redundancies within the next two months.

SIPTU official Paul Depuis, who represents most of the full-time staff, said they were shocked by the news.

“We have sought a meeting with management, which should take place next week,” he said.

Mr Liston stressed the theatre’s management team is working to address the financial crisis and he said he is confident it will be business as usual after the temporary closure.

“The board is actively engaged with turning this around,” he said. “We must stop the losses, reduce costs, restructure and look at revenue sources from shows, and funding to develop a sustainable model.”

Board chairman Damien Wallace said he is confident the tough measures will ensure the viability of the company.

“We are grateful for the support of Cork City Council. Without it we would be in a difficult situation. It has allowed us to move forward,” he said.

The board has set up a task force to engage with promoters and attract quality acts, and a sub-finance committee has been set up to review, among other things, ticket prices, he added.

Events that will be honoured during the temporary closure include Daniel O’Donnell concerts and an Aprés Match show.

The theatre will reopen in September with Fame: The Musical and with a full autumn and winter schedule, including the traditional Christmas pantomime.

Yesterday’s announcement follows the sanctioning last week by the city council, the theatre’s largest shareholder, of a €1m interest-free loan.