The future of a Bradford theatre in the midst of a financial crisis is looking "increasingly hopeful" following the creation of a working group to ensure its survival.

The Priestley was forced to bring in administrators before Christmas when it emerged its money problems were becoming too much. And now a group of arts professionals are tasked with devising an action plan to keep the Little Germany centre open.

Administrators Begbies Traynor say they are confident the group will breathe new life into The Priestley, and allow the renowned arts and cultural venue to continue.

The working group is led by Jenny Wilson, the former arts and festivals development manager for Bradford Council, and includes representatives of Fabric, Bradford's arts development organisation, and a number of other professionals with experience in arts venue management, production and finance.

They are looking at sources of funding to enable the venue to satisfy its creditors and put a professional management team in place.

Their objective is to take The Priestley in a new direction, as a "creative hub" for predominantly professionally-produced drama, comedy, music, film and visual art. The vision is such that artists presenting semi-professional, emerging and amateur work at the venue will benefit from working alongside professionals and finding a route into Bradford's wider creative and cultural sector.

Jenny Wilson said: "The Priestley has the potential to become Bradford's most important creative space - a lively, vibrant venue in the city centre. People have been saying for years that the city centre needs a place where people can meet, see interesting events and develop new ideas.

"With more people moving into Bradford, this presents a great opportunity for both the city centre population and the wider community to enjoy and participate in exciting and original entertainment."

The administrators will assess the working group's proposals before making a decision about The Priestley's future.

Julian Pitts, partner of Begbies Traynor's Leeds office, said: ""For many years, The Priestley has contributed significantly to the arts scene in Bradford. Its survival means a great deal for so many people in the city and beyond, and in partnership with the working group we are continuing to focus our efforts on securing its future by attracting new management and re-structuring finances."

Then in 2003, the theatre closed briefly after its former board of directors proposed liquidation. They had been struggling for more than a year to find the £60,000 it owed to creditors and further funding to secure its long-term future. A loan of £40,000 coupled with almost £20,000 in private donations saved the theatre.