The Palace Theatre could be run by a private company when it re-opens in December.

Trust board members have invited seven businesses to draw up individual rescue packages to drag the Westcliff playhouse into the next century.

The most impressive will be given a contract to operate the playhouse once it re-opens in time for the Christmas show.

Around 20 companies stepped in with management proposals after an advertisement was placed in the trade press in January.

Each will be required to attend an interview with board members before a decision is taken in April.

A trust spokesman said: "After an evaluation of the expression of interests received, the board asked the seven commercial organisations to prepare proposals for the management of the theatre."

The Palace is due to close its doors on Saturday night for nine months with the loss of 42 jobs.

Trust chairman, Ian Downie said: "The companies who are being asked to draw up business plans are all serious contenders from a theatrical management or production background.

"We are very confident that we can put the financial woes of the Palace behind us and make a fresh start with a new Palace Theatre of which we can all be proud."

Mr Downie refused to reveal the name of bidders.

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