Pruneyard Cinemas, the beloved Campbell movie theater, is permanently closing its doors on Jan. 25 after eight years in business at The Pruneyard shopping center. The announcement comes weeks after the theater company filed a lawsuit against its landlord amid a bitter dispute over rental rates, court documents show.
The lawsuit, filed on Dec. 19, alleges Regency Centers — the Florida-based property company that owns The Pruneyard — unfairly raised rents for Pruneyard Cinemas, despite a range of market challenges dragging down the theater business. The lawsuit also accuses Regency Centers of mismanaging the shopping center, blaming the company for declining foot traffic and the departure of other nearby businesses.
The news of Pruneyard Cinemas’ pending closure has dismayed longtime patrons and unnerved nearby businesses that rely on theater foot traffic to draw customers into the shopping center.
“It is with a heavy heart that we announce the permanent closing of Pruneyard Cinemas,” the theater posted in a banner on its website. “This decision has not come easily, and it reflects the challenges we have faced over the years.”
The post blames a variety of economic shocks, including the COVID-19 pandemic, the 2023 Hollywood writer and actor strikes, along with rising costs “that have made it unsustainable for us to continue.”
Regency Centers did not respond to a request for comment. A representative for Pruneyard Cinemas declined to comment.
Pruneyard Cinemas attempted to restructure its lease terms during the pandemic when movie ticket sales plummeted, but Regency Centers did not meet its requests during negotiations, according to a 2024 letter from the theater to Campbell leaders. At the time, Pruneyard Cinemas was making a public appeal for support, after Regency Centers imposed a 20% rent hike.
Now the company’s lawsuit, which demands rate abatement and other penalties, alleges Regency Centers’ refusal to offer a break on rent constitutes a breach of contract, given lease terms that stipulate rent negotiations must take into account prevailing market conditions.
The lawsuit also alleges Regency Centers, which bought The Pruneyard in 2019, has failed to adequately maintain the shopping center or carry out marketing work, despite monthly fees paid by Pruneyard Cinemas for such purposes. The spotty maintenance has resulted in “insufficient lighting and security,” leaks in the theater’s roof and “rodent and other pest infestation” problems, according to the complaint.
“It will certainly be a loss for us in terms of foot traffic, in particular, families,” Harriet Moss, who manages The Pruneyard’s Books Inc. location, told San José Spotlight. “Parents frequently bring their children in for books that mirror the movie they had just seen or are going to see.”
Pruneyard Cinemas opened its doors in the historic theater building in 2018, more than a year after the closing of the Camera 7. Sweetening the launch, the theater opened with a revamped look for the building and the addition of an adjoining restaurant and bar, known as Cedar Room. Since then, the theater has also begun to host a variety of events, such as comedy shows and drag queen bingo.
The closure comes as a blow to Campbell’s business community, adding to years of economic turbulence.
“It’s sad and unfortunate more than anything else that a very creative and innovative business in Campbell has shut its doors,” Campbell Chamber of Commerce Executive Director Ken Johnson told San José Spotlight. “The Pruneyard is such a vital part of the Campbell geography that I’m hoping it doesn’t have a horrible impact on the other businesses down there.”
An anchor business for The Pruneyard, the theater drew in 350,000 people each year to the shopping center.
“Theaters tend to bring in a lot of revenue,” Carlos Martinez, assistant manager for the neighboring World Wrapps restaurant, told San José Spotlight. “Even if they don’t dine with us, it helps catch eyes, at the very least, and spreads word of mouth. So it is a bummer.”
Deepening merchant concerns over declining customers, Pruneyard Cinemas’ announcement follows a number of other business closures at the shopping center. Notably, that includes Rock Bottom Restaurant & Brewery, which closed its doors over the summer. The company’s departure also appeared to center on a dispute over rent.
For Martinez, it’s a worrying trend.
“It kind of seems like a snowball effect that’s going on,” he said.
Contact Keith Menconi at [email protected] or @KeithMenconi on X.
About the Author
