From The Guardian:

Exeter's Northcott theatre – culture secretary Ben Bradshaw's local – has called in the administrators after trustees were told it was insolvent.

Chairman Geoff Myers said they had "no choice" when presented with the latest financial information last night. "We took this decision with a heavy heart," he added.

It is the latest setback for the Devon theatre, which most observers had assumed was putting its troubles behind it. In December 2007, soon after being extensively refurbished, Exeter was threatened with having its Arts Council funding cut because its audience was too narrow, but was reprieved at the last minute and had been thought to be doing well, both artistically and at the box office.

It seems that the problem this might might be as mundane as poor accounting practices.

A spokeswoman for Arts Council England said the organisation considered the decision to bring in administrators premature."We have been working with the new management over the last two years to broaden the theatre's programming and increase its audiences," she said.

"Despite this hard work, a legacy of financial problems has recently come to light. The Arts Council has been working with the Northcott's new management to understand the extent of these problems, but this work is not yet complete."

See also coverage at The Stage