Theatre Three, one of Dallas’ oldest nonprofit theaters, announced Tuesday it is facing severe financial strains that could lead to the company's closure.
“The ongoing erosion of support for the arts has dealt a devastating blow to our funding,” the theater said Tuesday in a Facebook post. “Without immediate and substantial help from our community, we will be forced to close our doors.”
Theatre Three opened in 1961, becoming a staple in the local arts scene. It employs eight full-time staff members, two apprentices, part-time box office workers and over 140 artists each season, including actors, directors, musicians and other creatives who help put on productions.
Attendance dropped in 2020 due to the COVID-19 pandemic. Though the theater was the first venue in Dallas allowed to return to in-person performances, the company struggled to regain its footing. A yearlong shutdown followed when the building's property managers chose to remodel the space, forcing the cancellation of the theater's 62nd season. The renovations took longer than expected, pushing the company to move to producing digital content on YouTube.
Ticket sales are the main source of revenue for the company and have steadily decreased since 2020. Associate artistic director Christie Vela said the theater has not been able to recover.
“Our tiny staff doesn't really get a break,” she said. “We're constantly producing. We're constantly trying to rent out the building. We're trying to find ways to raise money so that we can pay our rent.”
In order to keep doors open, the company aims to raise $200,000 to counter the rising costs of rent, insurance and production.
Vela said the Theatre Three’s biggest asset is its space. Over the years, Theatre Three has rented out the venue to fellow art groups such as Shakespeare Dallas, Uptown Players and Soul Rep. However, the company charges only what these groups can afford. Vela said the theater has received grants from The Arts Community Alliance (TACA) and the Texas Commission of the Arts, but that funding hasn’t been enough.
“Our operation costs are high,” she said. “They support us, but we're not the only ones in town, right? They can only give us so much.”
Vela said she finds it “demoralizing” having to ask the community for help.
“You're already an organization that depends so much on the goodwill of the patrons and the goodwill of the community,” Vela said. “To have to admit publicly that you are in trouble, it's not the picture that you want to put out there.”
Since the announcement, an anonymous donor has pledged to match all contributions made to the company up to $100,000 by the end of May. Vela said that money would give the staff room to restructure and plan for a better future.
So far, the theater has raised about a quarter of its total goal.
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