Sydney nightlife hit by fresh blow as theatre goes bust – after it made vow to be ‘culturally diverse’ to tackle ‘systemic racism’

A much-loved theater company has been placed into voluntary administration in the latest blow to the struggling entertainment industry.

Sydney’s Darlinghurst Theater Company immediately suspended all events and appointed BRI Ferrier’s Jonathon Keenan and Peter Krejci as administrators on Monday after asking for donations on social media

An announcement of the theater’s collapse urged ticket holders to ‘reverse’ admission costs through their credit card companies.

The company has been a major employer and cornerstone of Sydney’s entertainment and arts scene since its founding in 1993 by industry legend Glenn Terry.

Ticket sales have fallen sharply in recent years due to Mr Terry’s retirement in 2022, which led to the exodus of several other senior directors.

‘Managers are exploring all options to save or restructure the company. “If parties are interested in assisting in that recapitalization and restructuring process, they should urgently contact the administrators’ office,” said a statement on the theater’s Facebook page.

‘In the coming days, the administrators will communicate more with all creditors and stakeholders.’

Bri Ferrier director Mr Keenan said all shows would be suspended as he looks to restructure the company to avoid dissolution.

He added that cost of living pressures appeared to have tightened the pockets of prospective spectators and reduced ticket sales.

“The effect of this has been a reduction in revenues and donor support, which has led to acute financial problems,” Keenan told the newspaper. Sydney Morning Herald.

The collapse comes after the theater company’s artistic director Amylia Harris left in 2023

Ticket sales and donations at the Darlinghurst Theater Company (pictured) have fallen sharply in recent years

Box office revenue fell last year to $2.4 million from $3.3 million in 2022, while bar sales and donations also fell.

Without disclosing how much the company owes, he said it would need “a few hundred thousand dollars” to continue operations.

The theater company was denied funding by the NSW government, which faced problems with its unsustainable financial model amid rising costs.

It could get a reprieve from Sydney City Council, which will vote on a $200,000 rental subsidy for the Eternity Playhouse, where the company operates.

However, there are also concerns about the company’s management and the turnover of artistic and executive directors.

Co-artistic directors Glenn Terry and Amylia Harris (pictured) announced in 2020 that the company would update its cultural representation policy to address its “contribution to systemic racism.”

While sharing the role of Artistic Director in 2020, Mr Terry and Amylia Harris announced that the ‘Darlo’ would be updating its cultural representation policy.

A video from June that year showed the company had been criticized for not addressing their “contribution to systemic racism.”

“(The Darlo) must be better and acknowledge the ways our stories and our business processes have perpetuated systemic racism,” Ms. Harris said.

“We pledge to ourselves an actionable commitment to hold ourselves publicly accountable to take the first step toward structural reform.”

Mr Terry announced that the theater company would commit to having half of all employees and performers belong to “indigenous, black or culturally and linguistically diverse communities”.

The commitment to diversity would also be visible in production seasons from 2022 onwards.

Ms Harris took over as sole artistic director shortly after Mr Terry’s retirement, but would leave the role a year later.