In March 2011, the theater announced it was in danger of closure, following a cumulative deficit due to the non-transfer of budget promised by former Culture Ministry Director Yoav Rosen.

[3] During 2014, the theater started running the play "A Parallel Time" based on the life of an Arab citizen of Israel, Walid Daqqa.

Daqqa was a prisoner serving a life sentence, who was convicted of being part of the group that abducted and killed Israeli soldier Moshe Tamam.

[4][5] Following a protest by bereaved families, local public figures and others, Haifa Municipality decided to freeze the funding for the theater and to establish a committee to examine further steps.

Education Minister Naftali Bennett convened the National Cultural Cart Committee to examine the cancellation of further show orders.