Philly Orchestra Works to Avoid Bankruptcy

Chairman: We need $15 million recovery fund

The Philadelphia Orchestra touts a long history of firsts in the classical world, but with plunging attendance and strained finances, officials are confronting the unwelcome possibility of becoming the first of America's “Big
Five” orchestras to declare bankruptcy.

Chairman Richard Worley says he does not know the likelihood of such a step for the Philadelphia Orchestra, traditionally considered one of the best in the nation along with the orchestras in New York, Chicago, Boston and Cleveland.

“I can tell you our effort is to avoid bankruptcy and to achieve a recovery for the orchestra,” he said. “For that to work out, we need to see some progress in reducing the deficit and raising money for the recovery fund,” which has a goal of $15 million and currently has $8 million in pledges.

Allison Vulgamore, the orchestra's new president and chief executive officer, said such a step “isn't preferable” but acknowledges that the financial situation is very serious. She also acknowledges thinking long and hard before deciding to come to Philadelphia after leading the Atlanta Symphony Orchestra for 16 years.

“I'm here to put a strategic process in place that gives us flexible options to address our sustainability,” she said.

Vulgamore will be trying to reverse a decline in ticket sales, which has left Verizon Hall only 62 percent full this season, even with many seats offered at a discount and down from 80 percent at the end of last season. There is also the search for a new music director and differences between the orchestra and its subsidiary Peter Nero and the Philly Pops.

The orchestra's endowment totaled $112 million on Nov. 30, less than half the goal of $250 million -- and only $5.5 million of that amount is unrestricted, meaning that donors stipulate how the rest can be used.

Vulgamore said she saw her role as a facilitator of discussions, and leaders will be working on a strategic plan to answer a variety of questions. They include the appropriate size and scope of the orchestra's activities, how well it has harnessed talent and how-market-driven it has been, and its audience and relationship to the city and region.
 

Copyright AP - Associated Press
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