Campbell’s Pruneyard Cinemas announced Friday that it has managed to reach an agreement with its landlord in a longstanding rent dispute, allowing the beloved theater to remain open.
The news comes as a reversal in fortunes for the theater company, which told customers last week that rising costs would force it to close down permanently by the end of the month.
“We are thrilled to announce that Pruneyard Cinemas is open for business,” the company wrote on a banner posted to its website.
The company also sent out a brief email Friday announcing it will remain open, but the message included no details about the agreement with Regency Centers, the Florida-based property company that owns The Pruneyard. Pruneyard Cinemas has been locked in a years-long dispute with its landlord over rental rates, and recently filed a lawsuit over the issue.
A spokesperson for Pruneyard Cinemas declined to comment. Regency Centers did not immediately respond to a request for comment.
The news of Pruneyard Cinemas’ pending closure had dismayed longtime patrons and unnerved nearby businesses that rely on foot traffic generated by the theater.
In the company’s email, Pruneyard Cinemas thanked customers for the “overwhelming support” it had received since its closure plans came to light.
“Your enthusiasm and encouragement were instrumental in helping us reach an agreement with Regency Centers, allowing us to continue serving our beloved community of Campbell and the South Bay,” the company wrote.
Pruneyard Cinemas has blamed its financial difficulties on the economic shocks that have rocked the theater industry in recent years, including the COVID-19 pandemic and the 2023 Hollywood writer and actor strikes.
The theater company filed a lawsuit against Regency Centers in December, accusing the company of unfairly raising its rent, 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.
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.
Contact Keith Menconi at [email protected] or @KeithMenconi on X.
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