Iconic Danish venue to reopen after bankruptcy
Iconic Danish venue Tobakken is slated to reopen this summer after the board filed for bankruptcy in March 2023.
Based in Esbjerg, southwest Denmark, the former tobacco factory (cap. 1,200) began hosting concerts in 1993 and is one of the country’s largest and longest-standing indoor venues.
This week, the Esbjerg municipality finalised a partnership with Esbjerg Musikhuset that will see the performing arts centre take over the operations of Tobakken.
The venue will officially re-open on 1 August with programming focused on “the big, popular names, the growth layer and the local music scene,” according to Musikhuset.
As part of the deal, the municipality will contribute NOK 5.9 million (€516,441) per year, for an initial period of three years, and Musikhuset/Tobakken must submit a detailed annual account of how each subsidy is used.
The venue will officially re-open on 1 August with programming focused on “the big, popular names, the growth layer and the local music scene”
In exchange, Musikhuset must reserve 40 days each year for local community groups and youth organisations to use the venue. The operators must also establish an advisory forum with representatives from music associations in Esbjerg Municipality who will provide input on programming.
“It is a unanimous board that has decided that Musikhuset must take on the great and important task of running Tobakken,” says Johnny Søtrup, chairman of the board of Musikhuset Esbjerg. “We are convinced that we are the right people to take on the task, and we will do our utmost to ensure that the people of South-West Jutland get a fantastic rhythmic venue.”
Tobakken filed for bankruptcy and shut its doors a little over a year ago after the Esbjerg Municipality had decided not to grant the venue an additional DKK 5.8 million (€778,606) requested to make it through 2023.
Tobakken has had negative equity since 2016 and negative annual results in five out of the past six years, according to the venue.
At the time, Esbjerg mayor Jesper Frost Rasmussen, said: “We had all hoped that Tobakken would overcome its challenges, but now we have reached a turning point where we, from a political standpoint, agree that the best solution is not to provide Tobakken with more money. It hurts us to make this decision, as we believe in a future for a rhythmic music venue in Esbjerg, but it must be in an economically sustainable model, and it opens up a new and fresh start.”
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Iconic Danish venue files for bankruptcy
One of Denmark’s largest indoor music venues, Tobakken, has filed for bankruptcy after a turbulent few years.
The former tobacco factory in Esbjerg, southwest Denmark, began hosting concerts in 1993 for up to 1,200 visitors.
It was announced on Monday (27 March) that the Tobakken board filed for bankruptcy as the Esbjerg Municipality decided not to grant the historic venue an additional DKK 5.8 million (€778,606) requested to make it through 2023.
Esbjerg mayor Jesper Frost Rasmussen stated in a press release: “We had all hoped that Tobakken would overcome its challenges, but now we have reached a turning point where we, from a political standpoint, agree that the best solution is not to provide Tobakken with more money. It hurts us to make this decision, as we believe in a future for a rhythmic music venue in Esbjerg, but it must be in an economically sustainable model, and it opens up a new and fresh start.”
“The losses have simply been too great to financially and morally sustain Tobakken”
Chairman of the culture and leisure committee Jakob Lose added: “We still have great confidence in the music scene in Esbjerg, and of course, we must also have a strong rhythmic music venue in the future, which will host both established artists and the entire growth layer. The way forward is to create a new strong organisation that can safely lead a new rhythmic music venue into the future. We now need to take the time to figure out how to do this best.”
Peter Amstrup, chairman of the board for Tobakken, said he understands why the municipality has pulled the plug: “It is a sad day, and one could hope that someone would see the potential in Tobakken and start a new music venue. But now it is the trustee who takes over. The losses have simply been too great to financially and morally sustain Tobakken.”
Tobakken has had negative equity since 2016 and negative annual results in five out of the past six years, according to a statement on the venue’s website.
The statement goes on to say that “costs had been cut significantly over the past six months by reducing the number of employees and focusing intensively on optimising operations, it has unfortunately not been enough to offset the extensive deficit that has been accrued… Tobakken’s debt is primarily to the bank, the municipality and a few major suppliers.”
The venue closed immediately but the appointed curator will decide whether an attempt will be made to carry out some of the upcoming concerts and events.
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