ACW said the theatre’s application for continuing funding “did not convince”.

In its early years, productions such as The Passion starring Michael Sheen, Mametz by Owen Sheers and a celebration of the work of Roald Dahl in Cardiff announced the arrival of the National Theatre Wales with a loud fanfare.

But Mr Williams, a writer and producer from Neath, told the BBC’s Politics Wales the company had “lost a meaningful connection with the artistic community in Wales”.

He said: “The company hasn’t been producing enough work, especially work which has been engaging with the general public.

“Unfortunately, once you start losing those relationships with your key sectors, you find yourself in trouble.

“And of course what’s happened now is they’ve lost that meaningful connections with their funders, which leads to, inevitably the closure of the operation.”