NIC Lloyd, chief executive of Malvern Thea-tres, claims the rival Ambassador Theatre Group is not right for the venue.

He said the Malvern audience's "strange tastes" mean the commercial group could find itself at odds with the area's theatre-goers.

"You are a very discerning audience, which the actors think is the best audience in the country," he said.

"If there's a piece of theatre I do not think is suitable I will not put it on - middle of the road rubbish that destroys audiences.

"I think the key to keeping this audience coming regularly is diversity and quality of programme - if it's not good enough don't bring it."

His own proposal includes the setting up of an in-house production company.

Mr Lloyd said that production and touring costs would be covered by other theatres taking the show and added if they were good enough to go to the West End or Broadway producers would take them over.

In a climate lacking good touring productions, he said it could add between £90,000 and £300,000 a year by doing something they already do for other producers.

He said the theatre had been a successful partnership between the management, the trust and the district council

Under that partnership, the theatres had received all sorts of accolades as the most welcoming theatre and staff, for good audiences and successful programming.

He said that along with a donation of £750,000 from the local community, the partners had raised £7.8 million to refurbish the building and increased box office income to £3 million a year.

"That's not a bad achievement for three parties," he said.

"We get some of the best West End productions, many of which don't play other theatres.

"We push new shows and it's not surprising that one of the commercial giants is after us. And they are after Bath, after Chichester and Brighton.

"But one of the partners decided to back away. I don't really know why."

Mr Lloyd said there was still a possibility of further investment from the Lottery, and he called for funds from the council to match public fundraising.