In March 2005, the directors of the Northcott announced that planning permission and funding would be sought for a £3.1 million building project to expand front of house facilities and increase the capacity of the auditorium to 538 seats. Having raised £2.1 million, the theatre was closed for refurbishment in January 2007 and reopened on 12 December 2007, near the fortieth anniversary of its first opening. The refurbishment provided the following; • New auditorium seating • Additional wheelchair spaces • A lift to all public levels, providing full disabled access • Improved disabled facilities • Redecorated and upgraded public areas • Additional space for eating and drinking in the foyer • An enhanced entrance area • Refurbished and improved technical areas The day before the rebranded Exeter Northcott reopened in December 2007,
Arts Council England threatened withdrawal of its entire £547,000 annual grant. The loss of a third of the theatre's operating costs would result in a drastic cutback in production and job losses, if the theatre even managed to stay open. Geoff Myers, chairman of the theatre's trustees, said: "We took this decision with a heavy heart but when presented with the latest financial information we had no choice but to place the theatre into administration. It is to be hoped that a way can be found to effect a rescue of the theatre."
Exeter City Council and the university have agreed to help find a way to save the theatre. On 5 June 2010 it was confirmed by administrators
Begbies Traynor that a new company set up by the university had purchased the theatre, the Exeter Northcott Theatre Company, and the immediate future of the theatre was thought to have been secured. In September 2014 Exeter Northcott Theatre announced a new major sponsorship agreement with law firm
Browne Jacobson. In 2015, under Artistic and Executive Director Paul Jepson, the theatre returned to producing its own work with
A Christmas Carol followed by Betrayal, by
Harold Pinter, in 2016. In 2017, the theatre made a return to producing its own pantomime with
Dick Whittington, directed by Tony Lidington In January 2018 a performance exploring epilepsy and created by the theatre in collaboration with the University of Exeter, Beyond My Control, went on a national tour == Artistic directors ==