The executive producer of the canned $10 million stage production The Hobbit dumped his stake in the company bankrolling the show only weeks before it opened to bad reviews in New Zealand, The Australian newspaper reported today.
The paper said that Andrew Kay sold more than 11 million shares, or
10 per cent, of International Concert Attractions (ICA) in March below market value.
Mr Kay had been a shareholder since 2000 and ICA had netted more than $360,000 in the share sales, which also involved his company Andrew Kay Productions.
The production was cancelled yesterday after just 10 shows.
Poor reviews and ticket sales forced the show's Auckland season to be cancelled just five days out from its scheduled opening night.
The share sale had emerged as veteran show producer Kerry Jewell pushed for the company's board to be replaced, The Australian said.
Mr Jewell wanted to replace Ian Roberts and non-executive directors Bruce McLeod and Howard Tily.
In a letter to shareholders posted on the ICA website yesterday, Mr Jewell -- who has a 13.7 per cent stake in the company -- gave four reasons why a change in the boardroom was needed.
"The fact The Hobbit lasted only a few nights in New Zealand backs up everything I say -- that the company is not being run correctly, nor by people that know the entertainment industry," Mr Jewell said.
It is understood ICA spent $1.4 million promoting the show in New Zealand.
ICA chief executive Lester McGrath would not comment on claims the production had already lost $400,000.
Christine Anketell's stage adaptation of JRR Tolkein's children's book The Hobbit premiered last week in Wellington.
Promoters spared no expense flying journalists from Australia and Auckland to Wellington for the opening night performance.
Dubbed the show's "world premiere", it received mediocre reviews.
Melbourne-based producer Liza McLean said Hobbit Productions was disappointed the Auckland show had to be cancelled but the show was losing money and an "executive" decision had to be made.
The actors would still be paid, and it was still hoped the show would open in Australia in June, she said.
The production was originally scheduled to have an 18-month tour of New Zealand and Australia.
- NZPA
