Posted on October 17, 2009

print  e-mail

Western Massachusetts Theater Company in Dire Financial Straits

According to a report from the Technical Development Corporation, a nonprofit consulting and research group, Shakespeare & Company, a repertory theater company based in Lenox, Massachusetts, needs to raise $2.3 million to survive until March and may not meet its payroll this month, the Boston Globe reports.

The report found that the company, which was founded more than three decades ago, has amassed a $4.75 million deficit over the past five years and that its liabilities now exceed its assets by a ratio of almost seven-to-one, even as its performances continue to sell out. According to Shakespeare & Company board chair Richard Mescon, the company's problems are due to a variety of factors, including unanticipated fundraising challenges that led to the organization using capital funds for daily operations. Last year's stock market collapse exacerbated the company's financial troubles, especially after a pledge of more than $500,000 in securities arrived in the company's coffers valued at only half that amount.

Shakespeare & Company leaders, who requested the report in order to develop a recovery plan, said they have begun to imp-lement a series of cost-cutting measures, including staff reductions, a hiring freeze, and shifting performances to maximize ticket sales. The company also is in talks to restructure $8 million in loans with a local bank.

"The good news," said Shakespeare & Company artistic director Tony Simotes, "is that we are not only not doing nothing, but we've already put some changes in place, many of which this report suggests and others which will come down the road."

Edgers, Geoff. “Cherished Berkshires Theater Troupe Imperiled.” Boston Globe 10/14/09.

Primary Subject: Arts and Culture
Secondary Subject(s): Economic Crisis
Location(s): Massachusetts

FC014016