The Habima Theater: Keeping the Curtain Up - A Case Study in Theater Revival

Abstract

HaBima Theatre, the Israeli National Theater, holds a position of significant cultural importance. However, it has faced recurring financial crises throughout its history. Past solutions, sometimes relying on external support, may have inadvertently contributed to future problems. In 2019, the theater was on the verge of closing due to insolvency. To prevent this, the Municipality of Tel Aviv-Jaffa agreed to take over the theater's management, as a municipal corporation under specific conditions: non-commitment to past debts, implementation of stricter financial controls, continued government support, and a joint recovery plan. After a year and a half, with a significant effort by various stakeholders, a final plan was drawn up. The process of absorbing the theater as a municipal company included drafting agreements with employees, securing government funding, and creating a framework for a "debt-free" municipal company. This case study suggests that the solution adopted, emphasizing strong municipal oversight and cooperation, is likely to become a turning point to ensure the continuity and growth of the theater. Although delays occurred during the negotiations, transparency, and trust ultimately led to a way forward for HaBima Theater under a new municipal management.