Sherman Cymru, Cardiff
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Sherman Cymru redevelopment was £800,000 over budget

14 May 2013 Last updated at 07:39 BST

Last year the Sherman theatre in Cardiff re-opened after a multi-million pound project to improve the building.

But BBC Wales has learned that concerns have been raised about the Sherman's ability to pay for the work and ambitious ticket sales targets have not been met.

BBC Wales arts correspondent Huw Thomas reports.

Theatre revamp was £800k over budget