Theatre charity confirms closure and 70 redundancies after ACE funding loss

17 Mar 2023 News

Oldham Coliseum Theatre seats

Oldham Coliseum Theatre

Oldham Coliseum Theatre charity has announced that it will close by the end of the month and begin a redundancy process affecting its 70 employees. 

Last month, the charity said that it would cancel its upcoming events from 26 March onwards after Arts Council England (ACE) cut its £1.8m funding over three years

On 10 February, the charity entered a consultation period – which concluded earlier this week – with its staff to discuss future options. 

Having been unable to find a solution to the reduction in funding, the charity’s trustees and senior leadership team said the financial situation is not viable for the current continuation of the business. 

ACE called the closure “upsetting”, adding that it is giving nearly £360,000 to the charity to ensure it can cover redundancy costs and honour any outstanding contracts and agreements. 

Unable to bid for alternative funding

Oldham Coliseum Theatre previously received £615,182 a year over three years from ACE, totalling £1.8m.

The funding accounted for a third of the charity’s income, which stood at just over £2m in the year to March 2022 when including £1.2m from six government grants.

The charity said that the loss of funding “affects the ability of the organisation to apply for alternate funding”. 

“It’s with deep sadness that we confirm the forthcoming closure of Oldham Coliseum Theatre and the beginning of a redundancy process that will affect all staff. Doors to the historic venue will close to the public for the final time on 31 March 2023,” it said in a statement. 

The charity said staff “remain our priority” as it moves into the redundancy process.

It added: “We know the theatre’s closure is deeply upsetting for our audiences and participants, not least because of the joyful memories that hundreds of thousands of people from across the North West have of visiting the Coliseum to get involved in projects or to experience our home-produced plays, musicals and award-winning pantomimes.

“The Coliseum has been at the heart of theatre in Oldham for over 100 years and has survived two World Wars and a global pandemic. Our theatre company has a highly regarded history in the industry dating back to the Oldham Rep, which launched the careers of many famous faces. This tradition has continued in recent years, actors from Coliseum productions of the past decade now regulars on our television screens.”

ACE: Closure is ‘upsetting news’

ACE previously told Civil Society News that Oldham Coliseum Theatre’s application was deemed high risk and did not make a strong case for good investment of public funds

It then awarded £358,856 to the charity from its transition fund, which supports organisations leaving its national portfolio.  

Commenting on the closure, a spokesperson for ACE said: “Oldham Coliseum Ltd’s closure is upsetting news for many and devastating for its staff. We’re providing funding to ensure the company can pay full redundancies to its employed and freelance staff and that it can honour any outstanding contracts and agreements.

“Whilst recognising the current difficulties, we are supportive of Oldham Council’s plans for a new performing space which will carry forward Oldham Coliseum’s cultural legacy. We will be investing £1.85m in the borough so that the people of Oldham will still have the opportunity to enjoy and take part in arts and culture.”

Equity: ‘Closure is damning indictment of ACE’

Trade union Equity, which ran a campaign to prevent the closure, said it is “a damning indictment of both the Arts Council’s initial decision to cut its funding, and the half-baked plan to throw cash at the council in light of local uproar”.

“We should be clear that we are here because of the Arts Council’s strategy, which is made by people who have no understanding of how important this theatre is to its town, Greater Manchester and the north west region’s cultural ecology,” general secretary Paul Fleming said. 

“This is a loss of 20% of theatre acting work in Greater Manchester, and 70 permanent jobs at the theatre. Local employment in the hospitality sector and night-time economy depend on theatres with the history and community connection of the Oldham Coliseum. This is not a region, a town, or a time, to needlessly lose more jobs from a sustainable industry.”

In response, ACE said it is “required to invest public money responsibly and in both financial and governance/management terms Oldham Coliseum Ltd’s proposals posed too high a risk”.

“However, we have always been clear that there will be ringfenced Arts Council funding of £1.85m put aside to support a programme of cultural activity in Oldham between 2023-26,” a spokesperson said.

They continued: “We’re increasing our investment in Oldham over the next three years. It will be receiving more funding from us than ever before. As well as the £1.85m ringfenced funding we’re also investing £257,189 each year in national portfolio organisations Peshkar and Portraits of Recovery.”

They added that the ringfenced funding is for “a multi-artform programme including producing, commissioning and presenting activity across Oldham” and that the next step is for Oldham Council to submit an application outlining that proposed three-year programme of cultural activity.

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