Fringe Fest goes broke, but there are hopes of an Act 2

Though the organization that ran the festival for 13 years declared bankruptcy yesterday, many of the artists who were its performing base say they hope to organize some sort of low-budget, low-overhead annual event. Their intent would be to showcase the largely young, largely innovative and largely impecunious artists who have relied on the festival as a conspicuous outlet for their work.

Festival executive director Andrew Haines cited increased expenses as the major reason the organization could not meet its 2003 costs. After the festival ended last fall, he said, the board was looking at $120,000 in debts -- $84,000 of it owed to participating artists.

"Insurance rates tripled as a result of 9/11," he said. "Payroll taxes tripled, rent doubled, all our costs were up. Our budget ($200,000) was not realistic."

Waiting to be paid, in addition to some 90 artists' groups, are vendors including printers, a T-shirt provider, the phone company and the electric company. Additionally, there is a bank debt and rental arrears owed on performance venues and on the festival's tiny Capitol Hill office.

In its announcement yesterday, the festival's board expressed "great sadness." The decision to declare bankruptcy was reached "in order to pay out as much as possible before existing funds are further eroded by daily operations," the directors said in a statement.

When it started 13 years ago, the Fringe Festival was held in the bleak days of late winter or early spring when Seattleites were glad to be indoors. The past two festivals, however, were held in the fall, to be in sync with similar events in other cities. "The fringe circuit," as it is called, begins on the east coasts of Canada and the United States and concludes on the west coasts.

"We had hoped to broaden our offerings by moving to the fall," Haines said. "We figured that we could attract national and international talent, companies that would be out here anyway."

Tickets sales, however, drooped. They were down by 7,000 from a peak of 20,000 three years ago. This past fall was sunny and warm. People did not want to be inside small, dark, non-air conditioned performances spaces. And, because of war on terrorism visa problems, some foreign companies that played Canada were not able to continue on to the States.

When theaters go bankrupt -- as in the case of the Seattle Group Theatre and the Bathhouse Theatre a few years ago -- creditors' demands are met in part by sales of lighting equipment, costumes, sewing apparatus, set-building tools and office equipment. The festival, however, was not really a producer with theater equipment assets. It relied on 10 already-running small theaters to house its 90-some productions.

"As for assets, oh boy," Haines said, "just some office equipment -- desks, phones, computers, things like that. It's not worth much."

The festival predicament is part of a citywide (indeed, nationwide) phenomenon. According to the Theatre Communications Group, 54 percent of the country's non-profit theaters ended up with a deficit last year. Also, charitable giving to support non-profit arts organizations by individuals, government and foundations is down about 40 percent. In the case of the Fringe Festival, the drop amounted to 46 percent.

During the past couple of years, well-established Seattle companies, including the Seattle Rep, Intiman, the Empty Space and the Seattle Children's Theatre have cut budgets, laid off staff and curtailed programming. In the worst shape among the city's large theater companies was ACT Theatre, which teetered on the verge of extinction last year. The ACT board, however, includes people with money or connections to the wealthy. In contrast, the Fringe Festival board is made up largely of 30-something arts enthusiasts.

Among those expressing a will to stage an annual theater festival without the overhead accumulated by the Seattle Fringe Theatre Festival are artists associated with venues that used to house the fringe -- Capitol Hill Arts Center, Odd Duck Studio, Union Garage, Theater Schmeater and Richard Hugo House.

If there's a 2005 Fringe Festival, Haines said, the organizers "will not have our baggage, they won't inherit our debts."

Even before the festival officially died, Capitol Hill Arts Center staffer Bob Redmond was circulating a proposal that "artists 'do for self' as a way of guaranteeing our future ... " CHAC will sponsor Tuesday night cabaret performances through February with an eye to reimbursing out-of-pocket artists and venues.

In its bankruptcy announcement, the Fringe Festival board declared its members were "strongly supportive" of plans for a scaled down festival.

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