Taunton's Brewhouse Theatre and Arts Centre will close from tomorrow after calling in the administrators.
Tonight's production of Jane Eyre is due to go ahead as scheduled, but the centre's doors will then be shut while bosses consider its future.
The Stage Media Company is reporting that the centre's 55 staff - 20 full time and 35 part time - will be made redundant tomorrow morning.
The closure of the 352-seat venue is reported to be down to drastic cuts in public funding.
The Brewhouse lost its regular funding from Arts Council England in 2005, and five years later lost its Somerset County Council funding too.
All performances at the Taunton theatre scheduled to take place from tomorrow onwards have been cancelled.
A statement from the centre is expected to be issued tomorrow.
The news comes just hours after administrators announced the closure of music and DVD retailer HMV in Taunton town centre.