Actors and staff were in tears at the end of Treasure Island

Sixty people lost their jobs when the theatre went into voluntary liquidation on Thursday after the board was advised the Playhouse was insolvent.

Artistic director Stephen Edwards, whose offer of �282,000 of his own money to save the theatre was rejected, said he was not giving up hope.

The Arts Council said theatre in Derby had a future and it would be making a funding announcement in the new year.

The final performance of Treasure Island went ahead on Thursday evening when actors and staff decided the show had to go on.

Derby city council had objected to Mr Edwards' loan offer because his lawyers insisted it should be secured against the theatre's lease.

There absolutely is a future Peter Knott, Arts Council

Earlier the authority had accused the Playhouse of "bad management".

Mr Edwards paid staff wages of �40,000 and a �30,000 bill to insolvency experts before the theatre closed.

He said the theatre could reopen if it received donations totalling �500,000.

"I'm one of the theatre's largest creditors which means I can go to the creditors' meeting with a fair amount of clout.

"I'm sure there's a rescue package here."

Peter Knott from the Arts Council said there was a way forward.

"Early in the new year the Arts Council will be making its announcement about its funding plans for the next three years.