Industry Pro Newsletter: Hal Luftig Company Declares Bankruptcy, New Ohio to Close
Another Box Office Struck by a Cyber Attack
By: Alex Freeman Feb. 20, 2023
Earlier this month, the Box Office of the Philadelphia Orchestra and the Kimmel Center became tied up in a cyber attack - not unlike the attack that tied up the Met's box office for weeks - offering everyone a reminder that cyber security vulnerabilities should be examined by institutions of all shapes and sizes. In the newsletter this week, we also have stories about leadership changes, a bankruptcy filing, and the closing of the New Ohio, an off-Broadway institution for the last 30 years.
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Industry Trends
Republicans Target Drag Queens with Proposed Bills in 14 States
The proposed bills have been met with resistance from drag performers and their supporters. Timothy Sherwood, a drag performer who was crowned Miss Gay Texas in 2022, has argued that these laws will affect the trans community, nonbinary communities, and gay communities as well. Opponents of the bills say they are so broadly written they would effectively shut down drag shows, as many proposed laws would require venues to register as "adult-oriented businesses," meaning they would have to be located in the same areas zoned for strip clubs or adult sex toy shops. This could shut down drag shows at venues like college campuses, restaurants, and community theaters, as BroadwayWorld previously reported. Click here to read more...
Do Theater Skills Translate to Life Skills? New George Mason Study Seeks to Find Out
Thalia Goldstein examines the life skills that young actors have acquired as she observes children in theater. As a result of the camaraderie and teamwork they encounter during various theater exercises and events, she hopes to assist them in developing a greater feeling of empathy. This six-year longitudinal study has tracked more than 1,000 theater students from the ages of 5 to 18 to examine how formal theater training affects their social and emotional development. Click here to read more...
Broadway/New York
Broadway Producing Heavyweight Hal Luftig Company Declares Bankruptcy by Cara Joy David
As last year wound to a close, the Hal Luftig Company, Inc. (which I'll call the "Company" for short), well-known producer Hal Luftig's theatrical production company, filed for Chapter 11. The stated goal is to come out of bankruptcy with a court-approved payment plan to pay off the Company's debts. Meanwhile, Luftig continues to produce.
According to court filings, the bankruptcy was not necessitated by the pandemic, but rather a judgment against the Company and Luftig. In 2019, FCP Entertainment Partners, a former producing partner of Luftig, filed a claim against Luftig and the Company, arguing, among other things, that FCP was entitled to monies it did not receive related to productions of KINKY BOOTS and the Broadway production of THE ELEPHANT MAN. An amended complaint also accused Luftig of reducing FCP's THOROUGHLY MODERN MILLIE profit share.
Last year an arbitrator found for Luftig and the Company in relation to some of FCP's claims, but still ruled Luftig and the Company were on the hook to FCP for approximately $2.64 million. The arbitrator also granted FCP a 55% share of the Company's future profits related to productions of KINKY BOOTS. (Without getting too into the weeds, the Company owns 15.7315% of the interests in Kinky Boots LLC, the top of the KINKY BOOTS licensing tree, so FCP is to receive 55% of the profits of that 15.7315%.) A court confirmed the award. Luftig is currently appealing on behalf of himself, but not the Company, so the Company is obligated to pay. Except bankruptcy creates a stay, meaning most obligations, including the obligation to pay FCP, are put on hold while the bankruptcy process proceeds. Although Luftig the individual did not apply for bankruptcy, the court granted his application to have the stay apply to him too, allowing him to temporarily avoid dealing with FCP's payment demands.
The court filings reveal various specifics about the Company and the impact of the pandemic on it. The Company reported approximately $150,000 in assets. It still receives funds from KINKY BOOTS, CATCH ME IF YOU CAN, AMERICAN UTOPIA, the Stiles/Drewe musical BECOMING NANCY (which never made it to Broadway), SIX and more. (In the mini-scoop category, Luftig stated in a filing that the Sarah Jessica Parker/Matthew Broderick PLAZA SUITE may hit London and Los Angeles, which would bring money into the Company.)
The Company owes the most money to FCP, then $150,000 plus interest to the U.S. Small Business Administration on a SBA Disaster Loan and $75,000 to an individual, Amy Deutsch, on a loan. In terms of operating expenses, in December, for example, the Company expected to incur expenses of over $73,000 (including a hefty salary for Luftig) and make a $19,500 shareholder distribution to Luftig.
During the theater shutdown, Luftig continued paying the Company's two non-executive employees, but stopped collecting a salary himself. In terms of government money, the Company received approximately $133,830 in PPP loans, $614,069 from the Shuttered Venue Operators' Grant program and the $150,000 that requires repayment. Luftig and his husband also borrowed money from a bank (with their house as collateral) and loaned the Company $450,000. A spokesperson for Luftig stated that Luftig forgave the loan, meaning the Company no longer needs to pay it back.
There is no indication this filing will impact the business of producing or Luftig's future productions, which include Broadway's LIFE OF PI and HERE LIES LOVE.
A spokesperson for Luftig provided the following statement from the producer:
"I am proud to have always conducted my business relationships with the greatest integrity. This corporate reorganization is a response to a simple contractual dispute arising from a unique relationship with a former business partner that dates back to the earliest days of my producing career. The corporate filing allows us to address that situation directly while continuing to produce wonderful new works unrelated to this dispute."
After the conclusion of the current season on August 31, 2023, the New Ohio Theatre will cease operations at 154 Christopher Street after 30 years of serving as a vital foundation of the downtown independent theatre scene. Robert Lyons, the founding artistic director, adds, "We had a hell of a run." The decision was made as a result of a number of interrelated issues, including Lyons' plan to resign as artistic director, changes in the field's environment and dynamics, and rising financial strains on the organization. The Board decided that it was time for New Ohio to make way for the upcoming generation of theater creators and producers. Click here to read more...
Jujamcyn Theaters LLC, a cutting-edge Broadway theater owner and production firm, and International Entertainment Holdings Ltd, the parent company of Ambassador Theatre Group, a prominent live-theater and ticketing organization, have decided to combine operations. Financial details weren't made public. ATG and Jujamcyn will provide producing partners with a portfolio of venues that is more diverse overall. The merged team will have the resources and pooled knowledge to keep advancing live entertainment and improving the consumer experience. The combined group's largest individual shareholder, Jordan Roth, will hold the position of Creative Director in addition to serving on the board. The CEO will be Mark Cornell. Click here to read more...
Lisa Lawer Post Named Interim Executive Director of Second Stage Theater
Lisa Lawer Post has been chosen Interim Executive Director at Second Stage Theater, according to the organization's president and artistic director Carole Rothman. On February 27, 2023, Ms. Post will formally join the prestigious Broadway and Off-Broadway institution. Khady Kamara, the organization's current executive director, will leave at the end of the month. Click here to read more...
Regional
Dani Rowe Named New Artistic Director of Oregon Ballet Theatre
Following an 18-month search, Oregon Ballet Theatre has announced that Dani Rowe will take over as its next creative director, effective February 27. Since June 2021, Peter Franc has served as the company's interim creative director, taking over for outgoing director Kevin Irving. Australian-born Rowe danced as a principal with The Australian Ballet, Houston Ballet, and Nederlands Dans Theater before joining the company. Following a career in acting, she changed her focus to choreography. She produced pieces for the San Francisco Ballet, Royal New Zealand Ballet, Milwaukee Ballet, Grand Rapids Ballet, and other companies. She also served as assistant artistic director of SFDanceworks. Click here to read more...
Philadelphia Orchestra and Kimmel Center Ticket Office Tied Up in Cyber Attack
Following a cyber attack that occurred last week, the Philadelphia Orchestra and Kimmel Center Inc.'s ticketing systems remained inoperable for a sixth day on Monday. Although the functionality of the joint website was still severely limited, the arts organization was able to set up a temporary online portal with tickets for some shows on February 12. The FBI has become involved in the attack on POKC. The organization refused to confirm or deny that it was looking into the incident, citing a policy of not doing so. Nevertheless, Carrie Adamowski, a spokesman for the FBI Philadelphia, stated that the agency was "aware of the cyber problem affecting the Philadelphia Orchestra and Kimmel Center" and that when it learns about such occurrences, "it's customary that we offer our assistance." Click here to read more...
International
ATG Adjusting Marketing Following Bad Audience Behavior
According to The Stage, Ambassador Theatre Group, the largest theater operator in the UK, is collaborating with producers to limit marketing that can promote inappropriate behavior. The measure comes in response to an increasing number of instances in which performances have to be canceled due to unruly patron behavior and allegations of staff mistreatment. Click here to read more...
German Ballet Director Attacks Critic with Dog Feces
Marco Goecke, a German ballet director, has been suspended from the Hanover State Opera after smearing dog feces on a critic's face following his review of one of his shows. Goecke allegedly confronted the critic, Wiebke Hüster, during the intermission of another performance. The police are reportedly investigating the incident. Click here to read more...
Proposed Anti-AirBnB Rules Further Threaten Edinburgh Fringe Festival
There is a serious risk that in the future, the 75-year-old cultural celebration will only be available to the "wealthiest and elitist" artists and audiences, according to eight venues that are reportedly responsible for 75% of Fringe ticket sales. The major venues are opposed to new regulations that would make it necessary for owners of numerous homes to apply for planning clearance in order to use them as short-term rentals even if they do not really live there and that would preclude the use of tenement flats going forward. They have called a new program designed to relieve homeowners from the requirement for a license to rent out their primary residence or an extra room during busy times as "unnecessarily bureaucratic and cumbersome." Click here to read more...
Missed our last few newsletters?
February 13, 2023 - Are audiences worse behaved? The Antonyo's (Renamed) Returns
Recent reporting from the UK has many, anecdotally at least, convinced that post-pandemic shutdown audiences are significantly worse behaved than they were before the pandemic. While we don't have hard data to back up that claim, the stories in the linked article below about the audience behavior are certainly eyebrow raising. We've also got a great story from an event that our friends at Situation held last month, with their key takeaways about the way audience buying behaviors - and thus the ways in which we reach those audiences - have been changing as live events emerge from the pandemic. Click here to read more...
February 6, 2023 - Innovate to Survive, Tony Eligibility Decisions Raises Eyebrows
In both the US and the UK government funding decisions have shifted the way that many companies are able to go about their business - in England, the massive shift in Arts Council England funding has left many major stages looking to fill huge gaps in their books. In the United States, the end of government funding related to the pandemic, combined with changing audience behaviors have forced many theaters to look at their leadership and business models and reimagine their whole model of doing business. Click here to read more...
January 30, 2023 - A Look at Broadway's Comeback, The Leadership Shuffle Continues
One of the most interesting pieces of information included in the Variety article linked later in this newsletter is the way in which the buying cycle has shifted for tickets to Broadway shows. At BroadwayWorld, we're not only tracking Broadway data, but in regular meetings with regional theatres and survey's of our audience, we're seeing these same trends play out in regional houses across the country. Audiences are buying tickets closer and closer to the actual show date - but that doesn't necessarily mean they're making the decision to see the show late. In a post-COVID era, audiences are more attuned to the fact that things can shift, and so in an effort to protect themselves from navigating a cancellation, they're waiting to purchase their tickets. Click here to read more...
BroadwayWorld Resources
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