Downstage, New Zealand's oldest running professional theatre company, is to close.
The 49-year-old theatre company says it made the decision after being told that Creative New Zealand would not fund it next year.
In a statement Downstage Theatre Trust chairman Allan Freeth said its board had not taken the decision lightly.
''Downstage has a history [of almost 50 years] of bringing outstanding theatre experiences to Wellington audiences.
''In recent years the theatre has pursued a new model - based on partnerships with artistic companies, taking risks on new works, and creating a supportive environment for artists.
''It is not possible to continue this work without adequate and stable funding.''
Live at Six, the current show, will continue until Saturday.
Downstage received $325,000 a year for the past three years from Creative NZ, its single biggest funder.
The decision comes two years after Downstage was forced to scrap the rest of its 2011 programme and lay off staff due to the tough economic climate. It cut staff and got an extra $90,000 from Wellington City Council to help it relaunch last year.
But according to Downstage Theatre Trust's 2012 annual report ticket sales dropped last year to $356,000 compared to $394,000 in 2011.
Fundraising also dropped to $486,000 compared to $552,000 in 2011.
Mr Freeth said the board acknowledged the many achievements of the individuals and artists who had worked with Downstage over the years, and the professionalism and hard work of the theatre's staff.
In particular, the board acknowledged the contribution of chief executive and director Hilary Beaton, who took over in 2008.
- © Fairfax NZ News
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