A £120,000 project to restore Watford Palace Theatre's historic facade has been launched.

The theatre, in Clarendon Road, is one of nine charities in the east of England selected to take part in the Big Arts Give Challenge 2010.

This scheme aims to help the Grade II Listed venue raise £20,000 towards the project, which, it is hoped, will restore the theatre to its “former glory”.

From now until November 5, businesses are invited to pledge donations worth a total of £5,000. Then from December 6-10, members of the public are called on to donate £10,000.

Only when £5,000 is donated by the public can the business pledges be “unlocked”. The additional £5,000 from the public will then be matched by the Big Arts Give sponsor, Arts and Business, providing a total sum of £20,000 towards costs to refurbish and renovate the Palace Theatre's exterior.

Once £5,000 is pledged by businesses, no more can be taken at that point, although they will be able to contribute when fundraising restarts on December 6.

Lynne Misner, development manager at the theatre, said: “It means that for the theatre, it gives us an opportunity to work with all the community within the Watford area, both the business community and members of the public, to restore the facade of the building that for many is the heart of Watford.

“It's an iconic building in Watford town centre. It's in need of restoration as any building built in the early 1900s would be. It needs restoration to bring it back to its former glory.”

Watford Palace Theatre closed for two years, between 2002 and 2004, when it was refurbished internally. However, funding at that time was not available to restore its facade.

Now it is hoped that through this donation scheme, businesses and the public will help to kickstart its fundraising campaign and help raise £120,000, with work due to begin next spring.

This will include refurbishing the roof domes and Palace Theatre signs, cleaning the brickwork, restoring the windows and hanging banners advertising forthcoming shows.

Lynne said: “The really exciting thing is by businesses pledging just £5,000 between them, they will help us to raise £20,000 from the local community. It's a huge contribution that they're making and it will have a very visible and real impact on the cultural centre of Watford.

“We want to give the building the prominence it once had. It's prominent with the people that come here and the shows that we stage. But it's not just a theatre. It's there for the whole community to use in a variety of ways.

“Every single pound will make a difference, whether someone donates £50 or £5,000. It all makes a difference.”

Businesses can make a donation pledge online until November 5 by visiting www.thebiggive.org.uk/pledge/watfordpalacetheatre.

Members of the public can register their intention to make a donation now at www.watfordpalacetheatre.co.uk.