Blood on the dance floor as 'Swan Lake' star waltzes out

The radical choreographer Matthew Bourne has fallen out with the company that made his name.

His avant garde reinventions of The Nutcracker and Swan Lake have earned him a reputation as Britain's most brilliant and audacious choreographer.

But now Matthew Bourne, the doyen of contemporary dance, has been accused of walking out on the troupe that made his name – and taking his repertoire with him.

In an upmarket version of the split between impresario Michael Flatley and Celtic company Riverdance, Bourne is to quit Adventures in Motion Pictures over artistic differences with fellow director Katharine Dore.

And he is taking with him the rights to his celebrated reworking of Tchaikovsky's Nutcracker and a contemporary ballet based on Edward Scissorhands, the Tim Burton movie which starred Johnny Depp. The shows will now be staged by Bourne's breakaway company, New Adventures, in a move his former colleagues warn could force them to "cease trading".

News of the rift has emerged in an extraordinary letter from Ms Dore to the shareholders who have funded AMP since its formation 15 years ago. She informs them that Bourne, who ceased choreographing for AMP 18 months ago, has resigned as a director, leaving her in sole charge of the company.

She goes on to warn them that his decision to perform new versions of the troupe's past shows is eroding its repertoire and making her efforts to repay a loan from its shareholders "impossible".

The letter reads: "Matthew has set up a new company, New Adventures, and is proceeding with Nutcracker, we would argue a past AMP show.

"Therefore, we now need to examine the options open to us, which might include AMP ceasing to trade. We strongly feel that his producing what we believe to be a previous AMP production through his new company is contrary to both the spirit and intent of the loan agreement that you subscribed to."

She adds: "Matthew is also, independently of AMP, proceeding with the production of Edward Scissorhands on which AMP invested two years of work negotiating the rights for [sic]."

Ms Dore also accuses Bourne of undermining her ability to stage a revival of one of AMP's most enduring successes, Swan Lake, turned by Bourne into a raving gay fantasy danced by muscular, bare-chested males.

Ms Dore writes: "Last autumn, Matthew used the press to try and discredit both myself and the production of Swan Lake ... These public comments are now limiting our ability to trade, as a number of presenters do not wish to take Swan Lake, as they are nervous he will try and discredit it publicly and damage their box office."

Bourne's departure from AMP brings to an end one of the most celebrated, and controversial, chapters in the history of British contemporary dance. Formed in 1987, Adventures in Motion Pictures made its name by staging bold, iconoclastic renditions of classical works like Nutcracker and Les Sylphides. But it was in 1995, with the unveiling of its Swan Lake at Sadler's Wells Theatre, that AMP, and Bourne, achieved wider public recognition.

The show provoked live debates on national television news, but went on to win an Olivier for best new dance production and became the longest-running West End ballet ever. This success was followed by productions such as The Car Man, his maverick interpretation of Bizet's Carmen.

Bourne has sought to play down his dispute with Ms Dore, though he admits to being "surprised" by the tone and strength of her letter. He said he was willing to work with her to ensure AMP's shareholders received a fair return for their investment and so has decided to "stay on as a director" until an acceptable deal is finalised.

But, he said, "to all intents and purposes the company as a name will only really exist in relation to Swan Lake. New Adventures is Adventures in Motion Pictures under a different name – largely because it's the same dancers."

AMP's demise had ultimately been caused by creative tensions between him and Ms Dore. "It was basically two people falling out, a difference of opinion about the future."

New Adventures has already enjoyed an extended run of Nutcracker at Sadler's Wells this winter and Bourne confirmed he was also working on a new production ofEdward Scissorhands, but insisted: "They were projects of mine. They were only associated with the company while I was. Katharine was paid off for Edward Scissorhands at the time."

He pledged to cooperate with AMP on future productions of Swan Lake, which he said had "a substantial future".

Ms Dore declined to comment on the detail of her letter, saying the bulk of its content stemmed from "matters that are two years old". But, she added: "I feel very confident of a constructive and positive way forward, which might be a compromise for both of us but will be in the best interests of the shareholders."