Broadway ‘Cabaret’ Producers Say Flop Show Can’t Return Investments

An investor in the Broadway production of Cabaret At The Kit Kat Club is suing that show’s producers, claiming that despite the revival grossing more than $90 million he has seen no return on his $50,000 investment and has been “denied any meaningful review of partnership records or finances.”

James Lorenzo Walker, Jr., an Atlanta-based entertainment lawyer, filed the complaint September 4 in New York Supreme Court, writing, in part, that Cabaret producers have engaged in “a deliberate scheme intended to strip him and other investors of their investments in, and partnership profits from, the Broadway production.”

The suit – read it here – states, “Despite Cabaret grossing more than $90 million since opening on April 21, 2024, Plaintiff has not received a return of his investment or a share of profits from the Production. Plaintiff has requested and been denied access to records or an accounting and has been denied any meaningful review of partnership records or finances.

“Defendants’ conduct,” it continues, “exemplifies an emerging scheme in theatrical financing whereby outside investors are induced to invest cash into multi-layered structures designed to conceal revenues, divert payments, and facilitate self-dealing among insiders and their affiliate entities, while depriving the outside investors of transparency, accountability and the financial benefits to which they are legally entitled.”

The suit seeks, among other things, compensatory damages, punitive damages, attorneys’ fees and an “accounting of all Partnership revenues, expenses, and disbursements.” The financial amounts, per the suit, would be determined at trial.

The producers, led by ATG Entertainment (which also owns the August Wilson Theatre that was heavily revamped to provide the $24 million production its immersive “Kit Kat Club” environment), strongly deny Walker’s claims, saying it has no merit.

In a statement obtained by Deadline, the producers said, “While we are incredibly proud of the artistic success of Cabaret At The Kit Kat Club on Broadway and deeply saddened by the fact it has had to close early, the production has not been in a position fiscally to make any distribution to investors.

“We’ve offered,” they continue, “to engage in a constructive dialogue with Mr. Walker regarding his financial expectations and to give him access to our accounts, but unfortunately, he has instead decided to file a lawsuit that lacks any merit.” 

The revival is produced by Adam Speers for ATG Productions, Underbelly, Gavin Kalin Productions, Hunter Arnold, Smith & Brant Theatricals, and Wessex Grove.

The lawsuit comes at a gloomy time for Cabaret. Earlier this week, producer Speers announced that the show will close a month early on Sunday, September 21, in part due to the star Billy Porter withdrawing from the show while he recovers from “a serious case of sepsis” (he is expected to make a full recovery).

While Cabaret opened last year to strong numbers – original stars Eddie Redmayne and Gayle Rankin certainly added to the hot-ticket aura, as did the impressive revamp of the venue – the weekly grosses have plummeted in recent weeks. Since July 20, when the gross for the week was $1.2 million – not uncommon in the production’s initial months last spring – the figures have steadily declined.

In recent weeks, the weekly take was dropping to the $500,000 range, then $400,000 and then last week’s gross was a minuscule $380,052. About 32% of the Wilson’s seats went unoccupied. The show’s estimated weekly running expenses are in excess of $1 million.

Directed by Rebecca Frecknall, Cabaret was and is an Olivier-winning hit at London’s West End, now in its fourth year. Grammy Award winner Reeve Carney and two-time Tony Award nominee Eva Noblezada will take over the roles of the Emcee and Sally Bowles in London on Monday, September 22.

The Broadway production did not receive the glowing reviews of London critics nor the kind of long-term interest among audiences that keep expensive shows operating. Tony voters handed the show only one award, for Tom Scutt’s scenic design.

Walker invested the $50,000 into the show through KKC Productions NY Limited Partnership just a few days before Cabaret opened in April 2024. He was a co-producer on last season’s acclaimed, early-closing Dead Outlaw and an investor in the hit August Wilson’s The Piano Lesson and the ever-popular Michael Jackson musical MJ.

News of the lawsuit was first reported by Philip Boroff’s Broadway Journal business subscription newsletter.