State Theatre Board of Commissioners Addresses Circumstances of Bankruptcy Filing

The Board of Directors for Bay City’s State Theater says it’s taking steps to recoup some of its losses after filing for bankruptcy earlier this year.

In a letter to the public, the board alleges that in 2022, the Bay County Growth Alliance (BCGA) met with two board members to ask why an $800,000 loan had been represented as a grant. Following this meeting, the letter states the two board members resigned and a former employee was asked to relay the information, but that never happened.

In late 2023, amidst a series of allegations by various vendors and performers of unpaid bills involving the City of Bay City, it was discovered some of the bills were allegedly owed by the State Theatre, including the $800,000 BCGA loan. The board says it investigated the claims, and meeting minutes and other documents dating back to 2022 show no record of a loan approval or authorization for transactions with other organizations claiming to be owed money.

The letter praises efforts by the City and community organizations to try to repair any reputational harm that may have occurred. The board says it’s trying to be released from the obligation to the BCGA, which includes an allegedly improperly placed mortgage on the State Theatre building.