Carolina Theatre Clears Debt

Officials with the 1,047-capacity Carolina Theatre in Durham, N.C., have dodged a bullet in that the nonprofit that operates the venue has paid off $1.7 million in debt and reported a surplus during a July 25 board meeting. 

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The Carolina Theatre of Durham Inc.’s preliminary financial report showed an accumulated surplus of about $200,000 from operations through June 30, according to a press release.

Officials were able to clear the debt thanks to a combination of fundraising and a matching grant of $600,000 from the Durham City Council.

The facility was facing a possible closure a year-and-a-half ago because of the debt, leading to then-CEO Bob Nocek to step down. Dan Berman has been interim CEO on a volunteer basis since then while a search for a new CEO continues.

“The outpouring of support from all segments of our community is testament to the central role the Theatre continues to play in shaping the cultural life of our city and region,” Berman said in a statement. “I’m happy to report that the arts-loving people of Durham remain fervently committed to a thriving, welcoming and relevant Carolina Theatre.”

Under Berman the theatre also reported improvement in its rental, film, live event and concessions businesses.

The deficit was discovered in 2015 and was said to be from unpaid state admissions taxes. That led to other accounting problems coming to light.

Theatre officials and the City of Durham, which owns the venue, have filed suit against the nonprofit’s former auditing firm to recover losses stemming from the firm’s failure to report the errors.