North Shore Music Theatre to Be Auctioned, 10/1

As previously reported, the North Shore Music Theatre in Beverly Massachusettes is yet another casualty of the economic downturn.  In December, the 54-year old theater announced that without immediate philanthropic support, they would be forced to shut down.  Now, 10 months later, the theater will be auctioned next Thursday, 10/1.

In June, facing foreclosure, the theater announced in June that it was giving up a $2 million fundraising campaign it needed to put on a 2009 season. The theater was plagued by debt due to a drop in ticket sales last season, a decrease in sponsorships and the costs incurred from a 2005 fire that wasn't covered by insurance.

The auction will include the main theater building, the former education building and a separate restaurant on 26.5 acres. The property is assessed at $12.1 million by the city for tax purposes.

To read a full report of the closing, click here.

The theatre entered 2008 with a balanced budget that trimmed $1 million in expenses, but its projected revenue from tickets sales has fallen critically short of the goal. Over the last several months, the theatre's leadership has been focused on devising strategies that would keep the theatre alive and well, including the development of a new business model for the performance season, a possible land sale, and philanthropic outreach. Despite efforts by NSMT to reduce operating expenses and streamline business practices over the last several years, the severity and speed of the economic downturn has outpaced the theatre's ability to restore its economic health. Employees have been notified of lay offs effective January 11, 2009, when the theatre ended its performance season.

"We had been making solid progress on all fronts, however, with the economic situation so dire, we've run out of time," says David Fellows, Chairman of NSMT's Board. 

The theater just completed its final performance of the season, Disney High School Musical 2. Despite the blockbuster success of last year's showing of Disney High School Musical, ticket sales for the sequel were far lower than expected, selling at about the same rate as last year's A Christmas Carol.  

Operating since 1955, NSMT has evolved into the largest non-profit producing theater in New England, with approximately 350,000 patrons annually. NSMT has gained a national and regional reputation for artistic achievement, specifically in the areas of developing new works and providing outstanding theater arts and education programs. NSMT has received numerous industry awards including IRNE Awards, the Elliot Norton Award, the Rosetta Le Noire Award from Actors' Equity, and the Moss Hart Award. NSMT annually produces a six musical subscription series and an acclaimed concert series. With its celebrated Theater for Young Audiences program, a school touring program, and year-round classes for children, NSMT has become one of the region's leading providers of theater arts and education.