 Fortunes began to improve when James Henry Chute, who was the manager of the Bath Assembly Rooms and the son-in-law of the owner Mrs Macready, took over as the manager of the theatre and once again audiences began to rise.On 18 April 1862 a major fire destroyed the interior of the building including the stage, scenery, wardrobe and library, leaving just the exterior walls still standing.A new company was formed to rebuild the theatre and a competition held for designs.