THE future of a £14m theatre beset by financial problems could be decided at a crunch council meeting next week.

Durham's Gala Theatre was placed into the hands of the city council when its management company crashed in May, with debts of £700,000. A 13-week deadline was imposed while discussions took place over how it should be managed.

Council leader Maurice Crathorne said he was expecting a decision to be made at a cabinet meeting next Wednesday.

He said: "We will be receiving a report and deciding what the best way forward will be."

The city council said it had received detailed proposals from a number of companies interested in running the Gala, which it is examining.

But, despite an apparent upturn in attendances, doubts remain over the theatre's long-term financial viability and its attractiveness to anyone seeking to buy into the venue.

One option is to hive off the arts complex's various functions, such as its large screen cinema and restaurant.

Should the city council decide to continue running the venue in its entirety, it may be forced to provide some kind of subsidy.

It has previously said there will be no additional expense to the tax payer as a result of it taking over the Gala.