Actors and staff have said they are ready to start again

On Thursday afternoon the theatre shut its doors after meetings failed to secure a financial rescue package.

Now Tenon Recovery, brought in as liquidators to sell off assets, said their role had changed to administrators for a viable business.

A spokesman said it was even possible that the current production, Treasure Island, could be restarted.

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

Administration would be a rescue of the business in its entirety if possible Dillip Dattani, Tenon Recovery

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

It had been feared that liquidation would mean the Playhouse and contents being sold off piecemeal.

But the theatre's board, which includes members of the city council, said that after looking at the business they decided administration was a better option.

Dillip Dattani from Tenon Recovery said: "Liquidation would have effectively been a burial situation where assets would have been sold off.

"Administration would be a rescue of the business in its entirety if possible."

Financial support

He added: "Reopening the venue with the current show is a possibility but we are looking at the options.

"If there is a viable strategy or proposition that enables it to open again then we will consider that option."

The doors would remain shut for at least the next few days while the situation was clarified, he said.

The Playhouse shut after a loan from the artistic director, Stephen Edwards, was effectively blocked by the city council amid doubts over the theatre's management.

At that moment Mr Edwards said the theatre could reopen if it received donations totalling �500,000.

The Arts Council said it had pumped in �1m over the basic �700,000 backing it provided.