THE closure of Shakespeare's Rose Theatre, which is set to go into liquidation, "will be a loss" for the city.

Organisations have reacted with sorrow to news that the theatre - which was run by Lunchbox Productions - suffered "unsustainable losses" from its recent seasons in York and at Blenheim Palace.

Andrew Lowson, director of York BID (business improvement district), said it is sad for staff who have worked for the company.

He said: "This is sad news for the city and naturally for the employees who put a lot of hard work into these high quality productions.

"The Rose will be a loss, as it is the type of cultural event that we want in York, but we are glad to hear that the extremely popular Thor’s Tipi will continue to be part of the York Christmas experience."

Charlie Croft, assistant director for culture at City of York Council, said: “It is incredibly disappointing that Shakespeare’s Rose Theatre will not be returning to York next year. It was a major coup for our city to welcome Europe’s first full-scale working replica of a traditional Shakespearean Theatre. Whilst in York, the Rose Theatre attracted thousands of residents, visitors and students, who were able to access this unique cultural and educational experience.”

The company says Thor's Tipi Bars and Yorkshire's Winter Wonderland are not affected.