Stage-door's parent company Jubilee Productions disbanded in 1997 at the behest of Jubilee's chairman, Michael Edgeley. Most of Jubilee's members were unhappy with the decision to close the company and a group of them, led by Mike Gearing held a meeting to stay together under a new name as a new company. The group of nearly 30 former Jubilee members met and decided on the new name for the company and were able to gain backing from a local business to raise the funding to put on their first production. With Jubilee now defunct, the theatre had an opening for what would have been Jubilee's end of year show. Mike re-booked the theatre and the company voted that their first production should be Annie Get Your Gun.
After the success of the first production, Stage-door continued to grow, putting on three shows in 1998, Charlie's Aunt, Glitz '98 and My Fair Lady.