Serious financial problems mean the stage is set for Takapuna's Bruce Mason Centre to be taken over by Auckland Council's venues organisation.
Regional Facilities Auckland and the independent North Shore trust that now manages the centre have been in talks since last year.
The centre is about $500,000 in debt and RFA will take that over to ensure it stays open, Bruce Mason Centre Board chairman Mike Atkinson says.
Staff received a letter on Wednesday, giving them one month's notice of employment termination, that describes the "serious financial situation" the centre faces.
The letter refers to staff being told earlier this month "that the organisation had reached the stage where it could no longer pay wages and other liabilities on an ongoing basis".
In view of its inability to pay staff, the letter says RFA will pay wages for the next month and any annual leave owing.
The letter states RFA will help staff find new jobs but notes there are no vacancies within the organisation. It says RFA will look for other opportunities within Auckland Council and the private sector.
RFA is due to take over management of the centre from March.
Poor ticket sales to several shows last year left the theatre "exposed" and a relationship with RFA is the best solution for its future, Mr Atkinson told Fairfax Media.
The small theatre and conference centre is struggling on its own in a highly competitive market and "this is the sensible and rational thing to do", he says
About six of the centre's nine staff won't have jobs there, Mr Atkinson says.
He says he is unable to comment at this stage about whether chief executive Andrew Scott will leave.
Two to three staff will stay and others will be offered to help to find work at other RFA venues or with other employers.
RFA manages more than $968 million of major regional facilities including Viaduct Events Centre, Auckland Town Hall, Aotea Centre and The Civic.
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