Gillioz keeps pace with reorg plan

Operations at downtown Springfield’s historic Gillioz Theatre remain in the black 18 months after filing Chapter 11 bankruptcy reorganization.

Interest in the ornate venue is on the rise – with such acts as classic rocker Peter Frampton, indie band Death Cab for Cutie and singer-songwriter John Prine on the roster this year – and theater board members expect revenues and profit margins to climb simultaneously.

The turnaround comes after a failed attempt to receive historic state tax credits complicated the theater’s financial goals and ultimately led to a Chapter 11 bankruptcy reorganization filing in December 2010. A group of preservationists and investors in 2006 reopened the iconic property at 325 Park Central East, but it failed to turn a profit until eking out roughly $25,000 in 2010. The theater ended 2011 in the black to the tune of roughly $100,000, and officials expect its profit margin to increase by 50 percent this year.

Michael Owens, managing director of the Gillioz Theatre, said 2011 revenues were $910,000, up 35 percent from 2010, and the theater is on pace this year for a 25 percent increase in sales, which include show tickets, banquet rentals and sponsorships. Just three years ago, the theater posted revenues of nearly $400,000 and an operating loss of roughly $350,000.

Owens said the Gillioz has focused on bringing a variety of national acts to town, and the success of those shows has led to more. Under Owens’ watch, the theater has hosted comedians Ralphie May and Jeff Daniels, and rock artists Third Eye Blind, Blues Traveler and Aaron Lewis of Staind.

“We like to bring variety to town. There are generally a lot of country acts that travel through the area, so we like a little diversity and I think we’ve accomplished that with acts like Primus and Death Cab for Cutie,” said Owens, who took the director’s post in March 2010.

“When we started producing these shows and attracting these national acts a few years ago, it has kind of snowballed, and really has helped put Springfield on the map as a destination for these touring acts,” he added.

The nonprofit Springfield Landmarks Preservation Trust owns the Gillioz building, but Netters-Gillioz LP, a for-profit firm, manages the theater and adjacent Netters building, Owens said. Management of the Gillioz comes at the direction of Gillioz Restoration Partnership LP, which comprises volunteer members who act as the theater’s board of directors.

The Springfield Landmarks trust and the Gillioz Restoration Partnership jointly filed for Chapter 11 reorganization to stave off foreclosure brought on by a $3.5 million debt to Guaranty Bank.

Bill Dunton, a partner with Abacus CPAs LLC and member of the Gillioz Restoration Partnership, said the Gillioz has made each of its roughly $13,000 monthly payments on the debt service to Guaranty Bank since the court in February 2011 approved a 25-year payment plan on the loan.

Guaranty Bank officials did not respond to Springfield Business Journal’s attempt to confirm the theater’s payment record. The original loan amount was $5.3 million, according to SBJ archives.

In January, Phil Rothschild, a Missouri State University associate professor of management, was named president of the Springfield Landmarks Preservation Trust and the Gillioz Restoration Partnership.

Rothschild, a member of both organizations for seven years, credits Owens’ work to promote the theater with helping it to realize profitability.

“His savvy and his work ethic have resulted in booking more events, better events and bringing in traffic,” Rothschild said. “I think he learned the value of networking with people in the industry and connecting with promoters and making them aware of who we are.”

Through June 1, the theater had sold 18,000 tickets, with B.B. King’s 1,100-ticket sellout in March being the top-selling show.

Citing a December 2010 sold-out show by Shinedown, Rothschild said Owens’ intuition about what kind of acts would do well here has paid off. He estimated the 2010 Shinedown show netted $5,000 in profit for the theater.

While Rothschild said Owens has made all the right moves, that work has come with guidance. Rothschild’s area of academic expertise is venue management, and he’s worked with Owens to help direct the theater’s marketing and booking efforts.

In addition, Rothschild said he and the other members of the five-member board have worked closely with Owens the last two years to turn the Gillioz into a “lean and mean” operation.

For example, he said former board President Dave Roling, vice president and Springfield division manager for Columbia-based Emery Sapp & Sons Inc., has helped Owens bring a business mindset to the position.

“We’ve become a nimble and active board. We are on the phone or in e-mail correspondence multiple times per week helping Michael make the decisions he needs to make to be successful,” Rothschild said. “We would not be in the black if it were not for the advice and services we are getting from volunteers right now.”

Rothschild said the Gillioz operates with a staff of three, a stat he compares to the Missouri State-run Juanita K. Hammons Hall for the Performing Arts and its staff of 12. Hammons Halls seats 2,200, while the Gillioz’ capacity is 1,300.

Owens said a recent move to increase the theater’s capacity should make it more flexible and able to meet the needs of a range of clients.

In February, management put the first 10 rows on moveable tracks so that it could increase capacity by 200 seats, with standing room only tickets available, he said. In addition, the increased room makes the theater more flexible for wedding receptions and banquets.

“It just opens up a wider range of events we can host,” Owens said.