A NEW manager has been appointed to run Durham's Gala Theatre.

Simon Stallworthy, a former director of the Octagon Theatre in Bolton, takes over from next week, following a major restructuring of the management of the venue.

The £14m flagship theatre has been dogged by controversy throughout its three-year history.

However, the man responsible for the overhaul of the council-owned complex described the appointment of 45-year-old Mr Stallworthy as 'the final piece in the jigsaw' in the turnaround of the theatre.

The Gala was plunged into financial crisis in January 2002, within days of its official opening by The Queen, when the management company employed to run the venue went into liquidation with debts of £700,000.

Durham City Council re-assumed control of the management of the theatre, but its problems continued. Theatre manager Rob Flower, part of the initial management team, was made redundant in October 2002.

His replacement, Janice Marthen, was fired in November 2003 following an after-hours party at the venue. Six months later, she received a five-figure pay sum in an out-of-court settlement after claiming unfair dismissal.

In March last year, Darlington Borough Council's arts team was brought in on a 12-month contract to revive the Gala's flagging fortunes with some success.

Earlier this year, the Audit Commission reported that the 500-seat entertainment complex was now on a firmer financial footing after seeing its annual subsidy cut from more than £900,000 in its first year to below £650,000 in the financial year which is coming to an end.

Mr Stallworthy, who worked with the Hull Truck Theatre for four years and is currently working on the TV soap opera Coronation Street, takes over as theatre manager on April 4.

The city council's executive director, David Marrs, said: "Simon comes to us at a great time for him and the theatre.

"We are now financially stable and his appointment is the final piece in the jigsaw. The experience he has with regard to mid-range theatre and production will enhance the work that has been going on over the past year.

"We believe that this will be the start of a very productive period for the theatre."