Philly Orchestra hits low note with bankruptcy
Although it's not likely to go out of business, the Philadelphia Orchestra's recent filing for reorganization in federal bankruptcy court is a cautionary reminder that our performing arts organizations remain at risk during the economic downturn.
The “Fabulous Philadelphians,” as the orchestra became known during the golden eras of conductors Leopold Stokowski and Eugene Ormandy, is the first of the traditional “big five” American orchestras to seek Chapter 11 bankruptcy protection. Board Chairman Richard Worley said the orchestra's trustees had a nearly unanimous vote April 16 to file for reorganization.
“It was a long meeting, thoughtful meeting, emotional meeting,” Worley said. “We're running low on cash, we're running a deficit and we have to put ourselves in a position to attract investment funds to help us.”
In addition to recent contentious negotiations with the musicians' union for a new contract, the orchestra has seen a notable decline in attendance in the past five years despite moving to Verizon Hall, the centerpiece of Philadelphia's new Kimmel Center for the Performing Arts, which opened in 2001. As part of its reorganization, the orchestra reportedly will seek a reduction in rent at its new venue.
Concerts will go on as scheduled, and the musicians will still be paid, even though John Koen, chairman of the members committee, which represents the musicians, said that the five musicians at the April meeting were the only ”no” votes on the 65-member board.
The nation's sour economy has taken a toll on nonprofit arts organizations, with smaller orchestras in cities such as Syracuse, N.Y., and Honolulu filing for bankruptcy in recent years. But Philadelphia's is the first major metropolitan orchestra to do so, according to the League of American Orchestras, the trade association for America's orchestras.
It is likely the case will take months to settle, with the orchestra's emergence from bankruptcy expected near the end of the calendar year.
The Chicago Symphony Orchestra is in a much healthier position, although the economy has had its impact as well at Orchestra Hall.
The CSO Association, which administers the orchestra, reported at last October's annual meeting that it posted a modest $41,000 surplus over its $61.6 million in operating expenses, its fourth straight year in the black, and that it had a solid $21.6 million fundraising year, along with ticket sales totaling $20.6 million, with just over 82 percent of capacity at Orchestra Hall.
Compared with Philadelphia, artistically, the CSO is also in a stronger position in its first year under Riccardo Muti's music directorship. Philadelphia is currently between music directors.
Yo-Yo Ma headlines CSO
Next week's Chicago Symphony Orchestra concerts, conducted by Riccardo Muti, will feature the orchestra's Judson and Joyce Green Creative Consultant, Yo-Yo-Ma, as soloist in Robert Schumann's Cello Concerto. Also on this program will be the first CSO performances of Mead Composer-in-Residence Mason Bates' “The B-Sides, Five Pieces for Orchestra and Electronica,” along with the Richard Strauss symphonic poem “Aus Italien.” Concert times are 8 p.m. Thursday, May 12; 1:30 p.m. Friday, May 13; and 8 p.m. Saturday, May 14. For ticket information, call (312) 294-3000 or visit cso.org.