Concerns were raised and emotions ran high during a recent gathering of creditors at the Kitchener-Waterloo Symphony, which declared bankruptcy three weeks beforehand. The meeting, held in the Conrad Centre for the Performing Arts, was orchestrated by BDO Canada, the assigned trustee of the symphony’s estate. Reflecting the event’s serious undertone, among those present were the symphony’s musicians and ticket holders.
Bill Poole, a subscriber to the symphony, spoke of a “almost a sense of betrayal” that seemed ubiquitous in the audience, especially among the musicians. This sense of betrayal emanated from the audience’s perception of being left in the dark during the symphony’s financial troubles.
Memories were fresh of the surprise cancellation of the 2023/24 season, which was announced mere days before it was due to start – an act that stunned musicians and patrons alike. Mere days after this, on September 19, a cry for financial help was sounded, as the symphony announced a need for a $2 million injection to fend off insolvency. By September 22, in spite of earnest attempts at fundraising, the decision to file for bankruptcy was formally pronounced, leaving approximately 66 musicians and staff unemployed.
At the meeting, the symphony’s Chair of the Board of Directors, Rachel Smith-Spencer, highlighted two overarching issues – the first being a downturn in cash flow garnered from ticket sales. Prior to the pandemic, subscriptions to the symphony hovered around the 8,000 mark, but by the time COVID-19 restrictions were lifted, this count had fallen to a dismal 2,000.
Understandably, attendees sought to place blame, yet Smith-Spencer warned against resorting to such notions. She shared that the symphony had sought a federal grant totalling $800,000, and even enlisted MPs to prepare a supporting report; however, despite waiting for a response until the end of August, none was received from the federal government.
Unfortunately, it was only after making the disheartening decision to cancel the season that the symphony heard the regretful news – no financial help from the government would be forthcoming. Amid operating at a deficit over the past two years and expecting an escalated financial crisis, the symphony finally pulled the plug on the season. Following this, ticket holders were informed that while they would receive donation tax receipts, the possibility of ticket refunds seemed faint.
During the meeting, Mike Braga from BDO Canada informed attendees that with little value attached to the symphony’s assets – its music library and instruments – it was highly unlikely there would be sufficient funds for reimbursing ticket holders from the bankruptcy procedure. The bleak circumstances painted a dismal picture of the value accorded to arts and culture in the province, which has also recently seen the closure of the Hamilton and London symphonies.
BDO Canada has estimated that the bankruptcy resolution process will take approximately a year. The unfolding situation is not just a financial crisis, but a cultural loss, as underscored by Kitchener-Waterloo Symphony music director Andrei Feher. The loss, he noted, would have repercussions across the youth orchestra and impact the musicians’ families, underscoring the significant cultural role the local symphony has played over the years.
