The operating company behind The Castle Theatre have been placed into administration after losing its contract with Wellingborough Council last month.
The council terminated its contract last month due to poor financial management creating a £500,000 pension black hole.
With nearly 40 staff involved at the theatre in full or part-time roles, there are no guarantees as towards their future.
A statement from administrators PBC Business Recovery & Insolvency told the Northants Telegraph: “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.”
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.
Joint administrator Gary Pettit told the Northants Telegraph: “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.”
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.
You can read the full story via the Northants Telegraph website here.