Several factors have worked against the theatre. Its funding was cut by Leicester City Council earlier this year and it also lost money when shows were cancelled whilst it negotiated new pay rates with its staff - members of BECTU.
With the closure will come significant job losses, leaving a reduced core of staff to work on the development of new projects, and to plan for the opening of a new Performing Arts Centre - to be called the Leicester Centre for the Performing Arts - currently timetabled for 2006. A 60-day consultation period with staff and union representatives started on 20 May.
A lifeline has been offered by Arts Council England who, in their own statement, added: "We recognize that the solution to the financial difficulties is likely to mean radical and painful change and that the theatre will need a one-off investment to meet the costs of change. We will work with Leicester Haymarket and endeavour to assist them through a process of business recovery."
