The operators of the Castle theatre have been placed into administration following the loss of its contract with Wellingborough Council.
The council terminated its contract last month after uncovering the state of the charity’s finances, including a £500,000 pension black hole.
A statement from administrators PBC Business Recovery & Insolvency said: “The Castle (Wellingborough) Limited, operator of The Castle Theatre in Wellingborough, has today been placed into administration.
“The directors were compelled to act in the best interests of the company’s creditors following the recent announcement by Wellingborough Council that they had terminated the contract to operate The Castle Theatre.
“Legal advice is being sought on this matter and nothing further can be added at this time regarding the administration and its circumstances.
“All performances and other community activities will, as far as possible, continue to go ahead and staff and performers will be paid by the administrator through ticket sales and merchandise revenue.”
Joint administrator Gary Pettit said: “This is very sad news for the Wellingborough community and, while we are working hard to find a solution so that The Castle can remain a focus in Wellingborough, we would encourage you all to continue to support the theatre.”
The statement added that the full level of debt is still being quantified, but it is known that the company inherited a £500,000 pension shortfall and this is their biggest outstanding liability.
All known creditors will be notified of the administration and registration procedure within the next five working days and any creditors who have not received information from PBC Business Recovery & Insolvency by Thursday, April 21, should telephone 01604 212150.
There are 38 staff involved at The Castle Theatre and, although there are no immediate plans for redundancies, this cannot be guaranteed.