The Arts Council is to conduct an independent review into problems facing the embattled Abbey Theatre, it was announced tonight.
In a statement, the Council expressed deep concern at the national theatre's current financial difficulties but welcomed proposals for change.
A funding shortfall and plummeting box office revenues are expected to hit a deficit of up to €2.5 million by the end of the year.
Arts Council chair Ms Olive Braiden said: "We have been in close dialogue with the Abbey over the past weeks and months. We are deeply concerned and wish to support the organisation through its present difficulties.
"To this end, we have decided to commission an independent review to help inform our response to the Abbey's proposals for change."
The review will begin in October, when the Abbey's own internal working group has completed its deliberations.
The group is investigating the artistic and restructuring plan and is due to report back within four weeks.
Abbey Theatre chair Ms Eithne Healy welcomed the review and expressed appreciation for the Council's support.
Meanwhile, the theatre's artistic director, Mr Ben Barnes, has apologised to the board of directors for comments he made in a controversial email sent to senior art figures around the world.
He claimed to have been made the scapegoat for the theatre's crippling financial problems which have resulted in a drastic restructuring plan and the shedding of 30 jobs - one third of the staff.
PA