Updated: 27 September 2010

We have been informed in unequivocal terms by Advantage West Midlands that they are unable to fund the planned conversion of the church into a theatre for the Loft. They concede that they have no legal basis for this action recognising that they are contracted to complete the project, but plead that the constraints imposed on them by the severe cuts in central government funding leave them with no alternative.

They have offered the Loft Theatre Company and the other partners (Warwick District Council and City Spirit) compensation packages. We have together with our partners taken a decision to pursue, without prejudice, acceptance of the compensation. This is because although we believe we have a good case to go to law and pursue a suit against AWM in court, it would be unwise to do so. Not only would it be expensive and time-consuming but, as with all litigation, the outcome would be ultimately uncertain. We are also mindful that events are moving swiftly and that the compensation offers themselves could be casualties if we were to delay.

Given all of the above, as matters stand now, as was reported to the board on Thursday evening, we are continuing to work closely with our partners exploring ways and means whereby the sums received in compensation might form the basis of alternative plans to fund the development and deliver a theatre in accordance with our agreed specification.

There is no guarantee of success and there is much work to be done before the situation becomes clearer. However, we are continuing to pursue the move as we are mandated to do by the membership and will continue to do so until either we succeed or it becomes obvious that we are not going to succeed.

This is not good news but it is not yet a disaster or anything like it. Whatever happens we all have a vibrant and ambitious theatre company to run and an exciting season in prospect. We must face this disappointing setback with determination and attack the challenge with energy and enterprise.

Michael Rayns
Chairman
14 August, 2010

At 3pm on Friday 24 September, acting jointly with Warwick District Council and the developers City Spirit, we executed a Deed of Settlement releasing Advantage West Midlands from any further involvement or liability for the Spencer Yard project. We are now scheduling meetings beginning on Monday 27 September with WDC and the developers to examine the feasibility of alternative ways of taking the scheme forward.

This disappointing outcome was not what we hoped for when we embarked on this project but I am certain that we have secured the best terms possible in the very difficult circumstances in which we found ourselves after the government’s decision to axe spending. We have laboured long and hard and we will continue to do so. We go into these new negotiations in a positive and optimistic frame of mind but I must make it clear to you that there is no guarantee of success. What I can guarantee is that I and the negotiating team (Bill Wilkinson, Gus MacDonald and Harry Sanders with advice from afar from David Fletcher) will continue to do our very best to deliver a worthwhile outcome and a secure future for the Loft Theatre Company.

Michael Rayns
Chairman
24 September, 2010

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