Inquiry into theatre's 'all-night party'

An investigation has begun into the alleged "inappropriate use" of a recently-opened £14m theatre in County Durham.

The loss-making Gala Theatre in Durham City, is already the subject of a vigorous financial review, after being taken into the hands of city councillors.

Now the Lib Dem-controlled city council has ordered an inquiry into allegations of unauthorised late-night parties at the riverside venue.

The Gala opened in January 2002 as the largest provincial venue in the UK in a decade.

The theatre, which also boasts a cinema, ran into difficulty within months when its original managers, the Entertainment Team, went into liquidation.

'Thorough investigation'

In its first year, the site lost £700,000 and Durham City Council, which is now running the venue, says it has been budgeted to lose a further £400,000.

Durham City Council leader Sue Pitts and deputy chief executive Brian Spears confirmed the internal investigation had started after reports of "inappropriate use" of the theatre's facilities.

Ms Pitts said: "We are taking these allegations very seriously indeed and we will launch a full and thorough investigation."

A spokesman for Durham City Council said: "An internal inquiry has commenced to investigate allegations that have been made concerning inappropriate uses of the Gala Theatre.

"The inquiry coincides with the commencement of an in-depth evaluation into available options for its future management.

"The study will focus on the day-to-day management, programming and future use of the complex."