The theatre committee issued a statement this week saying it could no longer operate in Rex Arcade beyond April 30.

''The owner of the Rex Arcade, ITC Property Holdings Pty Ltd, and the Committee of the Daylesford Community Theatre Inc, have reached an agreement by which the DCT will vacate the premises in the Rex Arcade presently used by it for the community theatre,’’ the statement said.

''The DCT will continue to operate the theatre at the Rex Arcade until 30th April 2014 after which screenings will cease and thereafter the committee will vacate the premises as agreed.

''The committee proposes to continue the Daylesford Community Theatre at another venue in Daylesford to be announced.

''For that purpose, it will be removing all equipment, fittings and chattels purchased with funds raised by the public from the existing premises and will be removing those assets to a new venue.

''The landlord and the committee have reached their agreement in good faith and will not be making any further public statements concerning the matter.”

Daylesford and Hepburn Springs Business and Tourism Associations chairwoman Robyne Head said the closure was a ‘great loss’.

''With the failure of mediation with the owner of the Rex Arcade, the closure of The Rex Theatre is a great loss to Daylesford,’’ she said.

''Credit must be given to the inaugural and current voluntary committees and Rex Theatre supporters who worked hard to make the theatre viable for our community.

''Sadly, it appears time and perhaps some unknown factors were not on their side.” 

Hepburn Shire mayor Don Henderson was shocked to hear the news the theatre would be leaving Rex Arcade.

''It’s sad the Daylesford Community Theatre is closing because it’s such a popular venue, especially with the young people,’’ he said.

''A lot of volunteer and work hours have been put into establishing the theatre.

''It’s a shame that it has to find another home.”

ITC Property Holdings declined to comment to The Advocate about the issue.

with The Advocate