THE manager of Durham's troubled Gala Theatre has been made redundant by his new employer.

Durham City Council took over the £14m theatre in June, shortly after it was officially opened by The Queen, following the failure of the firm it hired to run the 500-seat venue.

The Entertainment Team Durham went into liquidation owing about £700,000 to suppliers, artists and the council itself, most of which will not be paid.

Rob Flower, who was employed by the firm, was kept on when the council assumed management.

A council spokeswoman said yesterday: "The post of general manager is being made redundant. Rob Flower, who has carried out the role for the past nine months, is wished well in the future."

The spokeswoman said that the move was part of a staff restructuring designed to "reflect the core requirements of the increasingly popular arts and entertainment centre".

She said the theatre's existing 29 staff would be augmented with about four jobs, including the post of education officer.

The new staff structure "focuses on key areas including business management, marketing, front-of-house management, technical management and education.

"The moves are designed to drive forward the success of the centre and continue to introduce exciting new events and productions to Gala.

"They are also carefully constructed to maintain and develop its solid financial position and support its committed team of staff."

Mr Flower could not be contacted for comment.

The council initially took control for three months but last month decided to continue its stewardship for the foreseeable future.

The Labour-run council is now apparently examining expressions of interest from potential commercial operators.