When Klaus Peter Schuller was first brought on by the Virginia Repertory Theatre a year ago, he discovered that the organization was “essentially bankrupt.”

Schuller’s findings led the theater to launch a fundraising campaign to try to remedy the budget deficit of $1.7 million last September.

In addition to bringing money in, the Rep also needed to cut expenses, and determined the best way to do so was to sell its Hermitage Road location, which houses children’s programming and summer camps. 

The Rep is currently under contract to sell the building, with all indications being that the buyer is BAPS Swaminarayan Santha, a Hindu temple. The Hindu group has submitted plans to the city asking to build an additional structure next to the existing building, which would house a prayer hall and gymnasium.

The former Scottish Rite Temple was originally set to sell in February, but at the last minute the first buyer backed out, forcing the theater to pause programming and cancel one of its shows. 

The Rep plans to use the money from the building sale to pay off existing mortgages and create a cash reserve.

Schuller said canceling the show, “Fat Ham,” proved less consequential than expected, and audience members showed up in full force for the remaining programs of the season. 

The theater rented out a different location this summer for its summer camps and programming. Looking ahead, they hope to find more space closer to the main building downtown.

“The future of Virginia Rep is on Broad Street,” Schuller said. 

Schuller has been managing director of the theater since August 1, 2024. After the Rep’s fall call to action, 1,500 people donated to the theater, helping erase the $1.7 million deficit.

At the close of the most recent fiscal year, the theater reported a surplus of approximately $450,000.

Schuller attributes this transition to three factors: funding, programming, and what he calls right-sizing. Through right-sizing, or a “shrink-to-grow philosophy,” the Rep downsized by 25% in the past year.

In the wake of the pandemic, according to Schuller, “the audience declined precipitously.” Something he attributes to people getting used to the comfort of their homes for entertainment, and the Rep’s eagerness to jump into the same amount of programming as before the pandemic.

Right now the theater receives 60% of its revenue from donations, and 40% from ticket sales. If it returns to pre-Covid audience numbers, the theater would be able to flip those two numbers, Schuller said.

The director describes his current feelings around the theater’s future as “cautiously optimistic.” 

“We are definitely trending in the right direction,” he said.

Schuller said that as of now, the funding crisis has stabilized, and the theater is out of the worst of its financial distress.

Last season the theater was nominated for 29 Artsies, Richmond’s local theater awards. Schuller said the Rep is excited for what he called the “big, beautiful, joyous season” they have planned for this fall.

Looking ahead, though, Schuller said the work is far from over. 

“The biggest thing that people can do is to show up,” Schuller said. “We need people to vote for the arts with their feet, show up.”

The Fall season kicks off on September 11 with Agatha Christie’s ‘Murder on the Orient Express.’ The play is sponsored by Amtrak.

Contact reporting intern Juliana Vandermark at jvandermark@richmonder.org.