Glasgow theatre in ‘imminent danger of liquidation’

One of Scotland's most renowned theatres is under "imminent threat of liquidation" due to the rising costs of a multi-million pound redevelopment project.

The Citizens Theatre in Glasgow, which was founded in 1878, has been closed to the public since 2018. Building work began in 2019. 

With a planned opening date in November recently moved to the following autumn, members of the Scottish Parliament have warned that a funding gap of up to £8m could mean the theatre has to close within months if additional funding isn't provided.

READ MORE: 

• Citizens Theatre awarded £2m towards completing renovation
• Citizens Theatre appoints Executive Director

Scottish Culture Secretary Angus Robertson was asked about the theatre's financial situation after a meeting of the project's funders. 

It follows a recent announcement by Glasgow City Council that it will contribute a further £2m to the redevelopment, having already spent £6m on the project.

Conservative MSP Annie Wells said that although she welcomed the council's funding pledge, "that will not be enough to enable the project to be completed".

Labour MSP Paul Sweeney said that "the risk to the Citizens Theatre is real, with the company under imminent threat of liquidation".

He called on the Scottish Government to "actively participate in the [Citizens redevelopment] steering group" which consists of representatives of Glasgow City Council, the Citizens Theatre and main contractor on the project, Kier Group.

Sweeney added that there was "a major discrepancy between the estimated cost of the project according to the theatre's consultants and the estimated cost according to the prime contractor".

Rising costs

The cost of the theatre's redevelopment has risen sharply over the life of the project, which will see the theatre's original auditorium encased in a new three-storey building.

When first announced in 2013 the estimate was £10m. Last month the figure was put at £30m, with only £27m of funding in place at that time.

However, The Scotsman newspaper has reported that Kier is thought to have warned the final cost could be as high as £37m.

Responding to MSPs, the Culture Secretary said the Scottish Government, which has itself contributed £6m to the redevelopment, was "in regular discussion" with the theatre regarding the project and "the significant challenges it is facing".

The building work had, he said, been hit by "an unprecedented combination of events" including Brexit, the pandemic and high inflation costs, all of which had contributed to the soaring costs.

He added: "Everybody is very invested in trying to find a solution, but I put on record our recognition of the seriousness of the challenge that is faced by the Citizens Theatre and of the fact of that a significant financial gap remains."

He also cautioned that the government was "having to work within the most challenging budget that has been delivered under devolution" and that this was "particularly acute in our capital budget".

A spokeswoman for the Citizens said the theatre was "in ongoing, constructive conversations with the Scottish Government and will return to our conversations with the UK government on the levelling-up fund post-election."

She continued: "We are conscious of the need to both negotiate best value for money while proactively bringing together the final funds required and are working hard to do so in time for the completion of construction work by the end of this year."