Lloyd Webber puts theatres on the market

Sir Andrew Lloyd Webber, whose best-selling musicals from Cats to Phantom of the Opera have dominated the West End for two decades, is planning to sell part of his theatre empire.

Lloyd Webber is in negotiations over four theatres - the Duchess, Apollo, Garrick and Lyric - and has appointed industry figure, Patrick McKenna, to broker the deal. An approach from an unnamed, would-be buyer is thought to have triggered the negotiations.

Names being linked to the purchase of the playhouses, the smallest in the Lloyd Webber holding, include the Ambassador Theatre Group which, with 10 theatres, is one of the biggest players in the West End alongside Sir Cameron Mackintosh, who owns seven. The Broadway producer Max Weitzenhoffer, owner of the Vaudeville, is also thought to be interested.

The other seven theatres in the chain - the Palladium, Theatre Royal Drury Lane, the Cambridge, Her Majesty's, Palace, New London and Adelphi - are not thought to be part of the deal.

A spokesperson said: "Andrew Lloyd Webber has received an enquiry in relation to the acquisition of some parts of his businesses. As a result Andrew Lloyd Webber has instructed Patrick McKenna and Ingenious Media to advise on all available options. No decisions have yet been made. The Really Useful Group and Really Useful Theatres continue to operate as normal."

A theatre insider said the bottom line was probably that it was difficult to make any money from smaller auditoriums. The playhouses, which typically hold an audience of 800 to 900, were even more difficult to make money out of than the venues housing big, blockbuster musicals.

"If you talk to anybody in the theatre industry, they will tell you a couple of things almost as law - and one is that you can't make any money out of the playhouses, because of the size and because of the unions," the source said. "Playhouses might be playing to only half capacity but they still have to pay the staff both backstage and at the front of house regardless.

"It's a very cost-intensive business. If someone had made an offer to Andrew Lloyd Webber, as appeared to be the case, he would obviously have to consider it ... It is possible that it is someone not currently involved in the West End, but with interests, such as one of the families who own venues on Broadway."

Lloyd Webber, who has an estimated wealth of £400 million ($1.07 billion), bought his theatres in 2000 for £90 million ($240 million). His Really Useful Group has taken over management of the chain, which is co-owned by Bridgepoint Capital, which funded 50 per cent.

Shortly after the acquisition, the peer said he would not like his theatres to be sold to risk-averse financiers. He is thought to be in favour of selling to someone with an understanding of the stage. William Taylor, the Really Useful Group's chief executive, is understood to have effectively resigned after learning of the sale plan. He will not renew his contract when it expires in June next year.

Lloyd Webber is among a group of impresarios to have voiced concern about comfort and convenience for those attending a West End theatre.

- INDEPENDENT