"We regret the impact that [the bankruptcy filing] will have on our creditors and associates, but we take this action in order to preserve one of the region's most significant cultural institutions," board Chairman Allan D. Jensen said in the statement.
The opera company is the largest casualty among local arts organizations since the economy began its steep decline in September. Due to declining revenue, the Baltimore Chamber Orchestra recently canceled events scheduled for January.
"Naturally, we are saddened to hear that the Baltimore Opera will close its doors for the rest of the season," said Eileen Andrews Jackson, the Baltimore Symphony Orchestra's vice president of public relations and community affairs. "The BSO is certainly sympathetic to all area arts organizations now being affected by an extremely challenging economic environment. It is our hope that the Opera can turn itself around and re-emerge as a vital contributor to Baltimore's cultural life."
Goetz acknowledged that "there probably will be some challenges" to the no-refund policy for ticket-holders. Letters will be sent explaining an option of treating their purchase as a tax deduction.
The Baltimore Opera board named M. Kevin Wixted, a financial consultant, to the post of general manager. He will be responsible for directing the reorganization effort and future planning. Wixted served as the BSO's interim chief financial officer for seven months in 2007.
Longtime general director Michael Harrison relinquished that job last month to become artistic director. He will continue in that capacity and assist in fundraising. "Michael has been the lead fundraiser for the last 20 years and will remain very much involved in that effort," Goetz said.
She said that James Handakas, who was named acting general director last month, is leaving the company to accept an out-of-town job offer, and that board president Lisa Di Julio Bertani resigned within the past two weeks.
Various educational programs are expected to continue during the reorganization, and "the company will continue to solicit contributions to create an operating account to subsidize future productions," according to yesterday's statement. Goetz said that no staff member "has been let go yet."
