The Beck Theatre in west London will shut its doors in January following a bitter public row over its management.
Hillingdon Council announced that the venue will close on January 13, despite their repeated claims they wanted to keep the historic theatre running.
Officials say they offered previous operators Trafalgar Theatres a peppercorn rent deal with the council covering repairs, but disputes arose over additional subsidies.
Council Leader Ian Edwards said: "We recognise the valuable contributions our theatres make to our communities and are committed to retaining a strong community arts and culture offer."
However, Trafalgar Theatres has hit back, claiming they offered to run the venue without subsidies and accused the council of handling the situation "unprofessionally".
The announcement has sparked fury among campaigners. Jonathan Haynes from Back the Beck said: "We know that an operator has been engaged for three weeks with an option to open on January 5th. They can't bring someone in after closure. This is all lies. It will close for good."
The council maintains they're seeking new management, having appointed commercial theatre consultants to help secure a long-term operator.
Deputy Labour Leader Stuart Mathers blasted the Conservative-run council's approach: "They had one who had agreed to not receiving a subsidy and the council ran the clock down so that any proposal would need council support to be viable."
A planned demonstration outside Uxbridge Tube Station on Saturday is expected to draw large crowds, following previous protests that attracted hundreds of supporters.
The council defended their position, saying that subsidising Trafalgar Theatres - "a profit-making company that pays dividends to its owners" - was inappropriate given current pressures on public finances.
Hillingdon Council has been contacted for further comment.
