A delegation from SMG visited North Tyneside this week to join council officials in signing the deal over the running of The Playhouse, Whitley Bay.

Wes Westley, president and chief executive of SMG, flew in from the US to join John Sutherland, managing director of SMG Europe, to formally sign a Memorandum of Understanding with North Tyneside Council.

It now means that SMG – which already overseas the management of Newcastle's Metro Radio Arena, The Journal Tyne Theatre and the MEN Arena in Manchester – will run the Whitley Bay theatre when it opens in the autumn.

During the visit, the pair joined Mayor John Harrison on a visit to the theatre, which is in the final phase of an £8m refurbishment programme.

Mr Sutherland said: "We are very pleased to have what will be a very impressive, high quality venue as part of our portfolio and look forward to a successful partnership with the council and local community to ensure its an important venue in the regeneration of the area."

Meetings with local community arts groups are taking place to ensure they are informed about the new facilities available and opportunities for community use.

Mr Harrison said: "I am delighted that SMG Europe, a major player in the entertainments world, is committed to working with us to ensure The Playhouse, Whitley Bay, can be restored to a cultural hub for high quality entertainment, as well as supporting the local arts community.

"This will not only benefit residents from North Tyneside but also encourage visitors from the wider region which will benefit businesses in the area.

"The visit by Wes Westley and John Sutherland to the borough is a clear sign of the importance they are giving to this new venture, which given the quality of their existing venues is a massive vote of confidence by this global company.

"It was a great opportunity for us to visit the Playhouse and the final stages of the refurbishment work and to talk about the exciting plans for its future."

The new look Playhouse will feature state-of-the-art glass entrance; new and improved front of house facilities including box office, sales and two bar areas; a new raked auditorium with improved seating area; and improved backstage facilities.