A MEETING is to be held this morning for creditors of the failed Arc centre at Stockton.

The controversial £9.5m arts centre was closed last month after operating for little more than two years.

It went into liquidation after a rescue plea for £280,000 to the National Arts Council was turned down.

Soon after the venue's doors closed for the last time, all future productions were cancelled and all 50 full and part-time staff were sent home.

At 10.30am, at the Parkmore Hotel in Stockton, those still owed money by the venue will meet to discuss their position.

The Arc got into financial difficulty when audience figures failed to meet expectations and sales incomes fell.

High overheads were also incurred by design faults with the high-tec building, such as problems with the expensive computer-controlled lighting.

Throughout its short life, the Arc overran on many of its costs, while delays in creating the building meant it never made enough money to pay its way.

The Arts Council was first asked to bail out the troubled Arc a year after it opened, when it agreed to pay £1.2m on top of its initial grant.

At that time, creditors also agreed to write off 86 per cent of its £2m debts, but it is not known what they will discuss at today's meeting.

Suggestions that Stockton Borough Council may buy the closed arts centre have been dismissed as speculation.