A Cardigan theatre will close until next month to “ensure the future survival” of the business, after finding out their insurance would not cover loss of earnings from the coronavirus outbreak.

Theatr Mwldan closed on Tuesday until 2 April, but said the situation “will be reviewed regularly” as the country gets to grips with the crisis.

Theatr Mwldan CEO Dilwyn Davies said: “This is not a decision we’ve taken lightly, and we will continue to monitor the situation daily.

“We appreciate that some of you will be disappointed with this decision.

“Although we have not officially been advised by UK government to close, we now feel we are at a point where this is the only course of action open to us.

“Unfortunately, we have just been informed that our insurance does not cover us for loss of income due to an ‘unspecified’ disease (Covid-19 was unknown when our insurance arrangements were made).

“With no government support imminent, we, therefore, need to take immediate action to ensure the future survival of our organisation.

“We have also seen so many film release dates moved, and productions cancelled during the past few days that it has been impossible for us to go to print with our latest brochure, or to guarantee with any degree of certainty that the current advertised programme would go ahead.

“Our priority now is to protect our staff, our customers, and to safeguard the future of this facility for our community. We will now enter into a period of planning to ensure that when the world starts turning again, we will be right here on the other side, ready to welcome you all back.”

The theatre said its box office will be in contact with anyone who has booked for events or screenings that fall within this period to arrange a credit note or refund.