The Union Theatre in south London has been saved from closure after its owner, Network Rail, withdrew its application to the local council to change the site into offices.
However, other businesses housed within the Southwark archways ? including Academy Costumes ? still expect to be evicted later this year.
The 50-seat theatre, along with other businesses, was told last month that it would have to leave its archway premises by the end of the year if the railway company was successful in its planning application to Southwark Council to change the use of the space.
Network Rail has confirmed that while it has removed the planning application affecting the fringe venue, it will still go ahead with two applications to change other arches to offices.
A spokesman for the railway company said it is in discussions with other tenants to provide assistance in relocating them to other arches ?where possible?.
Adrian Gwillym, director of Academy Costumes, which has recently provided outfits for cast members in the film version of Les Miserables and the West End productions of Spamalot and Top Hat, said that Network Rail?s decision to allow Union Theatre to stay is a ?ploy? to ?cool the air?.
He said: ?We [the collection of affected businesses] feel this is a ploy to cool the air, to make it seem as though they [Network Rail] are helping small businesses. In fact they are helping one business and the other five or six business are not being helped.?
?It?s good they are helping the theatre but we are not happy about our future. It takes hours of your time to look for other spaces and we?ve got a lot of work lined up. You can?t just start making costumes out on the street,? Gwillym added.
Academy Costumes expects to be served a three-month notice period at the end of May if Southwark Council approves the planning application.
Meanwhile London Assembly, the organisation that scrutinises the activities of the capital?s mayor, welcomed the decision not to evict the Union Theatre.
London Assembly member Val Shawcross said: ?I am thrilled that Union Theatre will be staying. This theatre has established itself firmly in Southwark, which was illustrated with the amount of support from residents who rallied round to save it. Network Rail has done the right thing by listening to what local people want and we?re grateful that this fantastic theatre will be staying put.?
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