The Charity Commission has appointed interim managers to a youth theatre charity that is being investigated for ongoing concerns about its long-term financial viability.
Seven Dials Playhouse was placed under statutory inquiry by the commission in May after the charity completed the sale of its eponymous property, which it had bought 30 years earlier, and said that doing so would help it to “clear substantial debt”.
The commission contacted the charity last year over the sale, as well as concerns around its finances and how it was being managed.
After failing to be reassured of the charity’s long-term financial viability as part of an initial compliance case, the regulator opened its inquiry.
At the time, the charity said it was disappointed that the inquiry had been opened but that it intended to cooperate and support the investigation.
In its two most recently filed financial years, the charity has recorded an operating deficit, with an income of £250,000 in the year to September 2024 and costs of £675,000.
Interim managers were appointed on 20 October from Moore Kingston Smith & Partners, who will identify the charity’s assets and liabilities to the exclusion of the trustees.
They will also assess the charity’s viability, including determining whether its current business plan is fit for purpose and adequate enough to turn the charity’s financial prospects around.
The commission will then decide if the interim managers will stay in post alongside the trustees to develop a business plan which will help the financial prospects of the charity.
Seven Dials Playhouse said in a statement: “Our board of trustees and chief executive, Amanda Davey, remain in place and continue to lead all day-to-day and strategic operations for the charity.
“We welcome the interim managers’ advice and support in strengthening the long-term sustainability of Seven Dials Playhouse.
“We are confident in the charity’s existing direction of travel and we hope this independent review will confirm that the steps taken were the right and necessary ones.”
It added that it is “completely committed to ensuring the charity continues to thrive in the heart of London’s West End”.
Charity moves in to building
Another theatre charity, the Masterclass Theatre Trus,t moved into the former Seven Dials Playhouse building sold by the charity last month.
Masterclass said the move would offer greater flexibility and new opportunities to connect with emerging artists, while maintaining a strong presence in the West End.
Clare Annamalai, programme director of Masterclass, said at the time the charity was “well aware” that Seven Dials was in a period of transition, but felt its new mission aligned strongly with Masterclass.
