The news that troubled Bradford Playhouse has been handed a reprieve, for the foreseeable future at least, must have come as a relief to organisations that have bookings there over coming months.

Last week the Little Germany theatre went into liquidation with historic debts of around £300,000. The full extent was revealed earlier this month, to the “shock and dismay” of members.

The doors of the Chapel Street building were closed last Wednesday, as liquidators took hold of the property.

It was the latest chapter in a history of financial struggle at the Playhouse over recent years, resulting in periods of administration, temporary closure and rescue packages.

Now it has been saved yet again, thanks to a newly-formed company which will lease it from liquidators, with a view to taking it on permanently.

As reported in the Telegraph & Argus, Rob Walters, one of the creditors and a former chairman of the Playhouse, is to run it under licence. He has formed a company, Be Wonderful Ltd, and will oversee all business at the premises, valued at £370,000.

Rob says he will be seeking input from Bradford people on how they want the venue to develop in future.

“The Playhouse hasn’t really been in touch with the people of Bradford, that has been its problem for a while,” he says.

It is difficult to know what JB Priestley – at the helm of the old Civic when it became an independent theatre 80 years ago – would make of its dramatic highs and lows, but as a man of the people he may well have approved of fostering a sense of ownership. Given that the Playhouse has been under-used by Bradfordians for so long, it seems an appropriate way forward.

Initially linked to Leeds Civic Playhouse, the theatre was founded in 1929 and became independent in 1932. JB Priestley was president and his sister, Winnie, was secretary. After the original Jowett Hall building burned down in 1935 the theatre opened at its current site in Little Germany. It ran as an amateur theatre, showing plays and films.

A fire in July, 1996 led to a temporary closure and it re-opened the following year with a production of Priestley’s An Inspector Calls.

Several British actors cut their teeth at the Playhouse, including George Layton, currently in EastEnders; Oscar-winning director Tony Richardson; Peter Firth, star of BBC1’s Spooks; former Doctor Who assistant Mary Tamm; ’Allo ’Allo star Gorden Kaye; former Emmerdale actor Duncan Preston and film actress Billie Whitelaw.

Back in 2001 the T&A launched a Save the Priestley campaign when the theatre, then called The Priestley Centre for the Arts, faced closure with debts of £14,000. A total of £25,000 was raised to keep it going.

A brief closure came in 2003, with £60,000 owed to creditors, and it was saved again with a £40,000 loan and £20,000 donations.

In 2008 it went into administration again and the following year was re-launched, with a new leadership team and a new name, Bradford Playhouse. Vintage costumes from the wardrobe department were sold to pay debts and an ambitious arts programme of “artistic and organisational development” was supported by an Arts Council England (Yorkshire) award of £51,000.

While the programme included cabaret nights, a platform for local artists, live music and film screenings, amateur theatre companies continued to use the venue too. But the management team seemed to be taking a more avant garde approach to theatre.

Perhaps most controversial was an attempt by dancer Rita Marcalo to induce an epileptic fit in front of an audience, in July, 2009. The dancer, who has epilepsy, stopped taking medication and ingested stimulants such as wine and coffee. Watched by spectators, journalists and paramedics, she unsuccessfully attempted to bring on a seizure during a 24-hour performance, in a cage. The bizarre stunt attracted national press interest, but did little to boost local audience numbers.

Last year another leadership team took over, aiming to develop the Playhouse as an arts venue, while maintaining community use. Plans included attracting students, setting up a youth theatre and installing a lift.

Now Rob Walters is aiming to develop the building’s business and commercial potential, to widen use and ensure its appeal isn’t limited to a niche market. “It is vital that a commercial attitude be adopted,” he says. “I believe this theatre can meet the needs of local user groups, as well as professionals.”