BOLTON'S famed Octagon Theatre is facing closure, as it battles a budget deficit set to hit £ million. Council chiefs and arts bosses are now desperately trying to put together a £250,000 rescue package to stop the curtain falling on the town's major arts forum. The cash crisis has been blamed on falling ticket sales, coupled with a freeze on arts subsidies in recent years.

Theatre staff have been warned that there may be job losses in the future but no redundancy notices have yet been handed out.

Bolton Council has offered £120,000 towards the rescue bid.

The balance would be met by the Arts Council, the North West Arts Board and the Association of Greater Manchester Authorities.

Yesterday the council's chief executive Bernard Knight said: "The theatre has a financial problem which, if it can't be solved, would mean that closure is highly likely at some stage in the future."

The rescue package would see a "fairly immediate" injection of money into the theatre and productions would be slashed from nine to three a year for the next two years. There would be a reduction in locally-produced plays and touring companies, and other events, including cabarets and literary readings, would make up the Octagon's programme.

But before any money is handed to the struggling theatre, each proposed funder must agree a business package which is being prepared by the theatre's board.

If only one of the four parties rejects the plan it could sound the death knell for the theatre, which only 18 months ago celebrated its 30th anniversary. But yesterday Barry Wood, chairman of the Octagon's board, said he was confident that the rescue bid would succeed.

A decision about the emergency funding is due to be made next week.

He added: "The worst possibility is that the theatre would have to close but that looks very unlikely.

"We are now very close to getting all the funders on board.

"We have all been working very positively - the board, the management and the funders - to develop this rescue package and a recovery programme. It's very close to being agreed." The shock news comes after a multi-million pound revamp of the building, partly funded by a £1.68 million National Lottery grant.

But ironically the refurbishment led to a temporary drop in ticket sales when productions were staged in the Albert Halls while building work was completed.

Mr Wood added: "During the refurbishment we had to move location and that affected box office takings. It was not as successful as we had hoped. It has acquired a very good reputation as a theatre in the past years and it remains a very important part of Bolton life." Cllr Bob Howarth, leader of the council, also stressed his optimism over the theatre's fate.

"The theatre is very much part of Bolton and a cornerstone in the town's arts and we are very grateful to those who have come on board to help us get this agreement together."

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