The theatre built up debts of almost �500,000

A large part of the Haymarket Theatre's rescue package will be spent on redundancy packages for staff, it has emerged.

The troubled venue has been given �1.3m by the Arts Council.

Of the 76 staff, 63 have been laid off and negotiations are continuing about redundancy packages.

A spokesperson for the Theatre admitted redundancy packages would take up a "significant" amount of the cash.

Cutting costs

The city centre Theatre closed at the end of July with debts of nearly half a million pounds.

It's due to reopen for public performances next year.

Theatre spokesperson Ruth Doyle told BBC Radio Leicester the redundancy packages are likely to be four times higher than the statutory minimum.

This means staff could get up to �1,000 per year of service.

She also said many staff had worked at the theatre for over ten years.

The Arts Council has already insisted on a business plan being put in place which dramatically cuts the venue's running costs.