A NEW manager has been appointed to run one of the region's showpiece theatres that has been dogged by controversy.

Simon Stallworthy, a former director of the Octagon Theatre, in Bolton, Lancashire, takes over the running of Durham's Gala Theatre next week, following a major restructuring of the management of the venue.

The £14m theatre has been the focus of controversy throughout its three-year history.

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

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

Durham City Council re-assumed control of the theatre's management, but its problems continued. Manager Rob Flower, who was 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.

Finally, in March last year, the arts team at Darlington Borough Council was brought in on a one-year 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 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 ending this week.

Mr Stallsworthy, who worked with the Hull Truck Theatre for four years and is currently working on Coronation Street, takes over as theatre manager on Monday.

David Marrs, the city council's executive director, 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."