The Kennedy Center in Washington is facing the prospect of bankruptcy and could close as soon as Tuesday, according to documents prepared for its board. The performing arts institution’s administration says it may soon be unable to meet payroll or pay routine maintenance contracts.
The warning comes as the centre’s board prepares to meet and as a federal court considers a lawsuit challenging the decision to rename it in honour of Donald Trump. Most of the administration and board were selected by the president, who serves as the centre’s chairman.
One board resolution says the Kennedy Center should shut immediately because it is unsafe for continued occupancy. However, Joyce Beatty, the Democratic congresswoman pursuing the legal challenge, said in a filing that construction consultants brought in by the board had not made such a finding.
Ms Beatty, who is an ex-officio member of the board, filed two resolutions with the court on Monday. An accompanying document says the centre is in such a “precarious fiscal position” that it will be unable to support its payroll obligations and routine maintenance contracts “within a matter of weeks”.
The proposed closure comes ahead of a status hearing on Tuesday before Judge Christopher Cooper, who is overseeing Ms Beatty’s lawsuit against the renaming. The hearing is intended to set further deadlines and court dates, although critics of the centre’s leadership have questioned whether the timing of the financial warning is coincidental.
Kennedy Center faces financial and structural problems
The institution said on September 5 that part of the ceiling in its main building’s grand foyer had collapsed after rain damage. It has also pointed to wider problems with the building, including moisture trapped behind stone panels, staining and internal corrosion.
The centre’s administration has argued that it needs urgent investment and that Mr Trump is uniquely able to raise the sums required and oversee a major renovation. Commerce Secretary Howard Lutnick, whose wife sits on the board, said last month that repairs could cost between 400 and 500 million dollars if carried out over time, or 257 million dollars with Mr Trump managing the construction.
“He has the power and he has the expertise to get this done. He is the greatest builder in the world. And he will get it done on time and on budget,” Mr Lutnick said.
The Kennedy Center did not respond to requests for comment on Monday.
The centre’s financial difficulties follow a sharp reduction in performances and donations. Artists and audiences have left over the past year, saying the institution has become politicised under Mr Trump, while its event calendar is now a small fraction of its former size.
Most staff have either been dismissed or have departed. The remaining employees are largely loyal to the president, while the current president and chief executive, Matt Floca, was promoted from his role running facilities and has no experience in artistic direction, fundraising or arts administration.
Large not-for-profit arts institutions typically rely on a combination of ticket and other earned income, philanthropic donations and government grants. The Kennedy Center’s former president, Richard Grenell, sought to ensure every performance generated revenue or at least covered its costs.
Supporters of Mr Trump’s involvement say his name on the building would help attract the funding needed for its rescue, comparing the proposal with hospitals and universities named after major donors. It remains unclear whether the renaming would reverse the loss of artists, audiences and donations.
