Bristol Old Vic – one of the country’s oldest working theatres – is about to embark on a £7m renovation project.

Refurbishment of the Grade I-listed building will create new seating; improved stage visibility with lifted floors; a new air-cooling system and disabled lift access.

Work on site will begin on 1 August, with completion set for December 2008.

A £2m award from Arts Council England, £1m from Bristol City Council and a £1m donation from The Linbury Trust – part of The Sainsbury Family Charitable Trusts – will fund the revamp.

A public appeal will also be launched to raise the outstanding sum of £2m required for the renovation plans.

Rupert Rhymes, chair of trustees, said: “The decision to close the theatre was difficult, but we have very little option given the deteriorating state of the building, issues of health and safety and the need to improve the comfort for audiences. Unfortunately this cannot be carried out while the theatre is in operation.

“We’re going to reduce our current team to skeleton staff, who will be overseeing the refurbishment and possible outreach performances. We envisage that some redundancies will be made.”

All shows in the summer programme will run as planned.

As a result of the impending theatre closure, artistic director Simon Reade will be leaving the company. Rhymes added: “Simon has made a significant contribution to the artistic development of the theatre. His talents as director, producer and dramatist have been instrumental in the success of some of our most popular performances in the past few years. We are extremely grateful and wish him every success in the future.” Details: www.bristol-old-vic.co.uk