The Manchester institution has begun redundancy talks, with 65% of permanent jobs at risk
Ever since it transformed a derelict cotton exchange into the country’s largest in-the-round theatre space back in 1976, the Royal Exchange has been igniting imaginations. A Manchester institution, it has hosted some of the UK’s finest actors and provided a lifeline for many local residents thanks to its unparalleled community outreach programmes.
Now, like performing arts venues across the country, it’s under threat; with live performances still not permitted, inadequate financial support and no dates to work towards, managers ‘have been forced to make the incredibly hard decision to enter a period of redundancy consultation,’ with up to 65% of permanent roles at risk.
A statement issued on Wednesday 1st July said: ‘The Royal Exchange is heavily reliant on the income earned through ticket sales, fundraising, food and drink and venue hire. Over recent years we have been successful in reducing our dependence on public subsidy, which now equates to less than 25% of our £10 million annual turnover. As such, the impact of lockdown and our ability to operate commercially has been, and will continue to be, considerable.
‘At the moment, we simply can’t trade, as live performances are not allowed in theatres. Even if we were allowed to open, whilst there are still social distancing measures in place, it is just not financially viable within our current structure. From the government’s recent announcements, there is nothing on the table which gives us confidence or clarity to be able to restart any activities in the immediate future.’
Absolutely devastated. Please if you’ve ever enjoyed a play, a show, a gig, a film, a good piece of telly, a concert. And especially if you’ve ever loved the Royal Exchange (as I do with all my heart) write to your MP. The arts need help. https://t.co/sb7JQsqoJX
— Julie Hesmondhalgh (@juliehes) July 1, 2020
A sad yet inevitable result of government inaction? Those in the performing arts industry have long been lamenting the lack of economic support provided throughout the COVID crisis, with many also condemning culture secretary Oliver Dowden’s ‘useless’ ‘five-step roadmap’ due to its lack of dates.
In a response to the Royal Exchange's announcement, meanwhile, GM Mayor Andy Burnham said: “The COVID-19 crisis has challenged all parts of the our economy but the arts have been particularly badly affected. There have been many warnings coming out of the cultural sector in recent weeks but we are yet to see any meaningful response from the Government. We simply cannot let our theatres go dark and risk losing them for good. That’s why I will be asking the Government to work in partnership with us and urgently address the need for a support package for theatres like the Royal Exchange and the wider cultural sector.”
Royal Exchange artistic director Bryony Shanahan said: "It’s been heart-breaking to come to the realisation that this is the action we have no choice but to take. Our staff are dedicated, talented, loyal and they don’t deserve this – and neither do the thousands of people in our industry who are facing job loss and uncertainty. It is an awful time for us all, and it’s also hugely frustrating that government support simply hasn’t reached us in time, despite clear warning signals and cries for help. Access to culture for all should not be a luxury but a right, and so we must value it as such as we heal and move forward from this time."
Morning @OliverDowden reflecting on the fact that @rxtheatre survived an IRA bomb in June 1996 but this jewel in the crown of our national theatre scene is dying because of government inertia and inaction. pic.twitter.com/1FdijowOzQ
— David Eldridge (@deldridgewriter) July 2, 2020
The full Royal Exchange statement
The impact of COVID-19 on the Royal Exchange Theatre is monumental, and we have been working incredibly hard to ensure the survival and the future of our theatre.
The Royal Exchange is heavily reliant on the income earned through ticket sales, fundraising, food and drink and venue hire. Over recent years we have been successful in reducing our dependence on public subsidy, which now equates to less than 25% of our £10 million annual turnover. As such, the impact of lockdown and our ability to operate commercially has been, and will continue to be, considerable.
At the moment, we simply can’t trade, as live performances are not allowed in theatres. Even if we were allowed to open, whilst there are still social distancing measures in place, it is just not financially viable within our current structure. From the government’s recent announcements, there is nothing on the table which gives us confidence or clarity to be able to restart any activities in the immediate future.
As a direct result of this, and the dramatic loss of income associated with it, we have no other choice than to scale back the organisation and reduce our overheads in order to survive. This means that we have been forced to make the incredibly hard decision to enter a period of redundancy consultation with our staff. At the end of this period we may have to make up to 65% of permanent roles redundant.
This is devastating and very painful. We have explored all other possible options and this is the last resort in protecting the future of the Royal Exchange Theatre.
The primary focus now is our duty of care to our staff. We have an incredible team of people who have shown enormous commitment and resilience. This is a very sad and difficult time for everyone involved.
As a Company we remain committed to our vital role as a key cultural organisation for Greater Manchester, the North West and the national theatre ecology. We will emerge from this period as a different organisation in a very different landscape, but we are determined to deliver the best cultural experiences for our audiences and communities once more. And we will do our utmost to bring our stages back to life as soon as it is safe and economically possible, opening our spaces, inviting communities and presenting bold and inventive work from vibrant and original voices.
