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 NEW YORK: New York City Opera shut its doors Monday after a contract dispute brought the company known for daring modern productions, as well as for nuturing greats such as Placido Domingo, to a halt.

"Rehearsals are canceled until we have a deal. We are taking this one day at a time," Risa Heller, a spokeswoman for New York City Opera, told AFP in an email. The opera was meant to be rehearsing Verdi's "La Traviata."

City Opera, already struggling to escape mounting expenses and falling ticket sales, was brought to its knees over the weekend after failed negotiations between unionized musicians and management.

The drama added to fears for the future of the 69-year-old company long distinguished from its bigger rival the Metropolitan Opera for its innovative productions, including a focus on challenging -- and not always crowd pleasing -- 20th century works.

George Steel, the general manager and artistic director, said the unions failed to understand the company could only be saved if employee contracts were radically pared back.

"For New York City Opera to survive, we must transition to the model that most opera companies use: paying people only for the work that they do," Steel said in a statement. He said management had gone to "extraordinary lengths" to accommodate musicians' demands.

However, unions representing the musicians threatened to strike to protest the company's attempt to force through "destructive" conditions.

Musicians told Steel in a letter that they were trying to find "a way to keep City Opera as a significant New York cultural icon" and had made "concession after concession."

"Instead," the letter said, "when City Opera's lawyers walked out of negotiations they imposed their own, destructive contract."

The American Guild of Musical Artists, which represents singers and directors, and Local 802 of the American Federation of Musicians, which represents the orchestra, have voted to authorize a strike.

Heller said there was no plan to hire non-union replacement workers.

City Opera has been on life support since last year when it announced a cost-saving move out of its home in the prestigious Lincoln Center and shortened the schedule.

The financial decline set in years ago, compounded by the weak US economy, an expensive theater renovation, and plummeting ticket sales.

City Opera was founded in 1943 and helped launch the careers of Domingo, Jose Carreras and Beverly Sills, among others.

Copyright AFP (Agence France-Presse), 2012

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