THEATRE chiefs have pledged to work with key funders in an attempt to beat a financial crisis.

Harrogate Theatre receives £400,000 a year from the Arts Council, £120,000 from Harrogate Borough Council and £62,000 from North Yorkshire County Council.

The theatre has already appealed to the Arts Council for more cash and hopes the borough and county councils will also be able to provide extra money.

The theatre is understood to have a cash shortage of more than £100,000.

The problems surfaced a fortnight ago, just as its annual pantomime, Jack and the Beanstalk, was breaking all previous box office records.

Theatre chief exeuctive David Bown, said: "We have been and are continuing to work closely with all of our funders to resolve these difficulties.

"They are being very supportive and understanding and are as passionate as we are about ensuring the future of Harrogate Theatre."

Mr Bown said the challenge facing the staff and himself was to ensure that the theatre received the support enjoyed by the pantomime all year round.

Asked how the theatre had got into financial difficulties, Mr Bown said that audience figures had been much lower than predicted.

He said the theatre had been very ambitious in its choice of productions during 2005, particularly so with the musical The Fantasticks and Alan Ayckbourn's two plays House and Garden.

Staging the two plays had meant splitting the auditorium to create two acting spaces with theatregoers being invited to see both plays.

Mr Bown said the theatre believed the productions would provide an exciting opportunity for audiences to see productions which had enjoyed a phenomenal response throughout the country.

"But the reality is that these productions under-performed at the box office, revenue figures did not meet our projections and this is what has led to a shortfall," he said.