Titchfield Festival Theatre goes bust owing £8.61m

The charity behind Titchfield Festival Theatre and The Great Barn entered administration in May after trustees concluded there was no realistic prospect of turning around its finances.

Administrators say unsecured creditor claims total £8.61m, including a potential HMRC claim of £8.24m and a further £368,931 owed to unsecured creditors.

The theatre had been in a long-running planning battle with Fareham Borough Council that ended when a Planning Inspector rule its 450-seat Arden Theatre was built without permission.

Administrators said the theatre had been engaged in "protracted litigation" concerning the planning status of its St Margaret's Lane site, with the costs of that legal fight, together with restrictions on trading activities, contributing to cashflow problems and mortgage arrears of around £181,000.

The report said: "Owing to a lack of accurate and up to date financial information, up until recently the underlying trading performance of the theatre could not fully be assessed by the board."

Trustees also became aware of what administrators described as a “highly significant” potential HMRC claim relating to Gift Aid.

The organisation's biggest secured creditor is Unity Trust Bank, which is owed around £2.14m and holds charges over the theatre's assets, including its two property holdings.

Those properties, in St Margaret's Lane and The Great Barn, are estimated to be worth a combined £2.85m, although the final outcome will depend on the sale process now being overseen by administrators.

The collapse has also left a trail of local businesses and individuals out of pocket across Hampshire.

Among those listed as creditors are Fareham-based engineering consultancy Paul Basham Associates (£19,000), Twyford planning consultancy Southern Planning Practice (£32,000), Southampton-based RPA (£4,008) and Fareham construction consultancy Welbro Project Management (£68,000).

Administrators say rescuing the charity as a going concern is not feasible and are instead focused on selling assets for the benefit of creditors. Based on current estimates, unsecured creditors may receive a dividend of around three pence in the pound.

The report also suggests the administration could ultimately lead to the company being dissolved if asset sales fail to generate enough money for a wider distribution to creditors.

In January 2026, the Charity Commission opened a statutory inquiry into the organisation's governance following complaints about its activities.