 In the 18th-century, Norrköping was the third city in Sweden, and there was a need for more entertainment in the prosperous city.The theatre was founded by the merchant Johan Ulric Egge (1730–1795), who owned a popular restaurant, and named Egge's after him.The theatre was situated in the centre of the city, between the Hedvig Church and the bridge across the Motala ström, and near the restaurant, the pleasure gardens and reading parlour own by Egge.