A MUSIC venue has been saved in a six-figure deal, but small North-East firms owed money will not see a penny.

Newcastle Opera House has changed hands, after its former owners went into administration.

Developer the Adderstone Group has bought the Grade One listed building in Westgate Road and pledged to carry on running the venue as normal.

Anthony Turner, director of previous owners Infonow, placed the company into administration with Sunderland accountants Tenon Recovery, after a winding-up petition was lodged with Newcastle County Court in April.

But under the new deal, Mr Turner, 49, of Busty Bank, Burnopfield, near Gateshead, will continue to run the venue as director of new firm, Dovetail Trading Limited.

Dovetail will own the theatre and Dylan's bar, while Adderstone Group will own the rehearsal rooms.

Steve Ross, assistant director of Tenon Recovery, Sunderland, said money from the sale of the premises would be passed on to Infonow's creditors, but that there was still expected to be a significant shortfall.

"Unfortunately, the secured creditors were in for a lot of money and there is not a lot spare. It is unlikely there will be any funds available for any other rank of creditor, such as tradesmen."

The deal secures the jobs of 18 full-time staff and about 80 part-time and casual employees at the theatre.

Jim Semmence, general manager of the Opera House, said: "I am delighted this deal has gone through. The management and staff can now look forward to the future with greater certainty after a difficult period.

"The Opera House has helped put Newcastle and the North-East back on the live music map internationally. It is important to Newcastle-Gateshead's aspirations to be Capital of Culture in 2008.

"We have very loyal customers, many of whom have naturally been concerned about the future of the Opera House. My message to them is that it's business as usual and we look forward to seeing you in the near future."