GWENT Theatre will close in December with the loss of around 40 jobs after a last-ditch appeal to save it failed.

The Arts Council of Wales upheld its decision to withdraw funding, with Gwent Theatre’s chairman Gregg Taylor saying the decision to "destroy" the company will have a devastating effect on present and new generations of actors, writers and designers in Gwent.

Mr Taylor said he was "disappointed but not surprised" the decision to withdraw £250,000 annual funding not overturned.

On the same day we reveal a Monmouthshire pianist got a £23,000 grant for a year-long project to study the music which could have been played on the Newport Ship, the much-loved theatre group has announced it will cease to exit within months.

The Arts Council appointed independent assessors, who failed to uphold the appeal from Gwent Theatre’s directors on the basis the council had followed procedures.

Gwent Theatre was one of over 30 arts groups in Wales to have its funding cut after an investment review.

Mr Taylor said: "Far from being advocates of the arts, they are cutting public funding to those communities where it is most needed."

In 2009-10, 220 performances were given delivered by the Abergavenny-based organisation to 14,213 youngsters in 219 schools.

It works with 22,000 children a year.

Around 40 professionals, employed as actors, stage managers, administrative staff, script writers, musicians, poets and storytellers will now be issued with redundancy letters and the theatre will close its doors for the final time in December.

An Assembly spokeswoman confirmed an inquiry into access to the arts in Wales is underway and Mr Taylor urged people in Gwent to write to the Assembly about this closure.

An Arts Council spokeswoman said: "We’re happy to offer whatever help and support we can as they consider their next steps."

Gary Meredith co-founded the organisation in 1976 and is now its artistic director.

He said: "I’m devastated, I cannot understand the reasoning. The Arts Council rushed headlong into cutting companies rather than finding ways for them to survive."

Newport-born former Torchwood actor Gareth David-Lloyd, 29, who played Ianto Jones in the BBC show, went to the theatre’s educational service, Gwent Young People’s Theatre.

He said: "I know how much the area needs them," calling the theatre "an inspiration and irreplaceable."

Former member and West End actress Caroline Sheen and her cousin, Hollywood actor Michael Sheen, also campaigned to save the group.

Miss Sheen’s father John Sheen is secretary of Newport Playgoers Society and his students worked with Gwent Theatre when he was a teacher at a number of Newport schools.

He said: "It’s very disappointing, they did so many wonderful things with so many children. Like many things, you took it for granted while it was there, but now it’s gone, people will really miss it."