1952 brought unexpected trouble. A storm broke in August which ripped the tent canvas right to the top of one of the king poles, thus compounding the theatre’s financial plight. The loss for the first season had been £12,000 and £5,000 for the second, causing Stewart’s accountant to warn him of possible bankruptcy if things continued on their present course.

After due consideration, solace and advice was sought from an old friend, James Shaw Grant, editor of the Stornoway Gazette and later to be Chairman of the Board of governors.

Today the solution to John Stewart’s problem seems obvious. But then it required adaptability and considerable self-sacrifice. He decided to form a non-profit distributing society, along the same lines as the Scottish National Orchestra Society.

In so doing, he handed over his house, grounds, workshops and what was left of the tent theatre as a gift to the society. In return he was appointed Festival Director, with the right to live in what had been his own home. His General Manager - Kenneth Ireland, with whom he had visited Pitlochry on that original visit of 1944, was appointed company secretary.

Support from the Arts Council to the tune of £250 for each of two plays - The Rivals and The importance Of Being Earnest helped the theatre to end the 1953 season with a surplus of £1000 and a new feeling of confidence. It was during the early part of that year work began on a new, much modified and improved theatre - the result of a special building appeal.