[3][4] Sargent soon left and after six months Mackaye and Frohman were forced to sell their interests to benefit Tiffany and other creditors.

[5] Actress Helen Dauvray then became manager, making her one of the first woman theatrical executives in the U.S. Gustave's brother, the impresario Daniel Frohman, took over at the beginning of the theatre's third season and stayed until it was demolished in 1902, when he established the Lyceum Theatre on 45th St.[6] Daniel Frohman ran the Lyceum Theatre Company, a stock company with a more or less constant troupe of actors performing several different plays each season.

The Lyceum Company also sent productions on the road with full complements of actors, sets, musicians, crew, and publicists.

)[7][8] From 1886 until 1890, David Belasco worked for the Lyceum Company as stage manager (in today's terms, director or artistic director),[9] co-wrote three of the company's productions with Henry Churchill de Mille, and taught at the acting school.

[10] He and his brother Charles Frohman continued to produce plays at the Lyceum after the stock company moved.