It’s not a great time to be in the theater business.

Just ask Clive Cholerton, the Caldwell Theatre Company’s newly appointed artistic director.

There have been whispers in the local theater community that the Caldwell owes money to vendors, is two months behind in mortgage payments and has not been managed effectively.

He said Friday that the Caldwell’s woes have been greatly exaggerated. As for owing money to vendors or falling behind in mortgage payments, Cholerton would only say, “We’re working with our vendors and the bank. We’re doing everything to keep ourselves current and there are no plans for a foreclosure.”

Cholerton replaced Michael Hall, the Caldwell’s co-founder, on June 1. Cholerton joined the Boca Raton-based theater six years ago and has been its chairman of the board the past four.

To address its financial problems, Cholerton said the Caldwell plans to trim $250,000 from its $1.9 million operating budget this year.

Recently all the theater’s executives took a 50 percent pay cut. Two staffers left and three board members quit.

To reduce expenses, the theater will cut down on warehouse space and no longer finance apartments to house actors.

Cholerton said next season 95 percent of the actors the company hires will be local.

Despite the numerous challenges, Cholerton is bullish on the Caldwell’s immediate future.

“We can get this turned around,” he said. “We’re working on having a great summer and having a great next year.”