Toronto Symphony Orchestra says it faces bankruptcy

TORONTO, CANADA (Reuters) - The Toronto Symphony Orchestra, one of North America's major orchestras, could face bankruptcy unless it secures a quick cash injection, its chairman, Robert Weiss, told ReutersWednesday.
"The need for those monies is imminent," Weiss said. "The sad and blunt reality is if we do not (receive them) we would have to suspend our operations."

Weiss issued a plea to the orchestra's patrons this week, saying the orchestra needs C$1.5 million ($956,000) in new operating funds by Nov. 30 and a C$1 million increase to its line of credit. Its annual operating budget is about C$20 million.

"Any organization that is facing financial difficulty couldn't say bankruptcy isn't an option," Weiss said.

Now in its 80th season, the TSO has a cumulative deficit of nearly $7 million. Its subscription sales over the past few years have declined to 30,000 from a peak of 45,000.
"Over the past five to 10 years, the capacity of symphony orchestras to sustain revenues, to hold audiences, and to deepen the connection to the communities they serve have all been severely tested...around the world," Weiss said. He added the climate in entertainment industry has become increasingly competitive because of a "virtual explosion in media alternatives."

Adding to its troubles, the TSO has been without a principal conductor since Finland's Jukka-Pekka Saraste declined to renew his contract in June.

The orchestra accepted the resignation of its executive director, Ed Smith, Tuesday. Weiss said Smith decided to leave after less than a year in his job because "in his judgment the internal culture of the organization is probably beyond repair."

Weiss said he disagreed with Smith but said the TSO board is forming a restructuring committee that would make changes to the organization. "We need to look at every single aspect of what's going on," he said. "We're trying to do everything we can to prevent bankruptcy."