HARRISONBURG, VA (Rocktown Now) –The Arts Council of the Valley Board of Directors voted December 17 to cease operations of Court Square Theater, with the closure set to take effect December 31, 2025, citing long-term funding losses and declining audience attendance.

ACV Board President Austin Sachs said the decision follows years of reduced local government support since the COVID-19 pandemic, combined with steadily shrinking audiences for films and live performances.

“Court Square Theater has played a significant role in the vibrancy of downtown Harrisonburg for more than 25 years,” Sachs said. “We recognize this closure may be difficult for the many patrons who have attended films, concerts, and live theater productions in that historic space.”

The theater opened in 1998 as part of downtown Harrisonburg’s revitalization, operating out of the former Rockingham Motor Company building. Initially managed by the City of Harrisonburg and the Harrisonburg Redevelopment and Housing Authority, the venue came under ACV’s operation in 2000, supported by city and county funding and a growing demand for downtown arts programming.

“That investment in the arts has really paid off,” ACV Executive Director Jenny Burden said, noting the growth of performing arts venues, galleries, restaurants, and shops in the downtown area over the past two decades. However, she added that audience habits have changed significantly since the theater’s early years.

Local government funding has also shifted, Sachs said. Since fiscal year 2020, ACV has lost a combined $371,450 in what had previously been level funding from the City of Harrisonburg and Rockingham County.

At the same time, attendance has steadily declined. Since FY23, the first full year following pandemic disruptions, average annual attendance has dropped by about 1,415 patrons. Attendance fell from 18,836 in FY23 to 16,436 in FY25, with projected attendance for the current fiscal year estimated at 14,590.

Sachs said the theater’s 260-seat capacity, while creating an intimate setting, has made it difficult to generate enough ticket revenue to cover performer fees, production expenses, and overhead.

The pandemic’s impact on theaters nationwide also played a significant role. Burden said a $110,932 Shuttered Venue Operators Grant from the U.S. Small Business Administration allowed ACV to reopen the theater in fall 2021 after an 18-month closure, but once those funds were exhausted, operating revenues fell short.

“To make ends meet, ACV has turned to its reserve funds, which is not sustainable,” Sachs said. “Continuing to operate the theater would risk the core mission of ACV — to cultivate the arts, create experiences, and connect communities.”

Burden said closing Court Square Theater will eliminate the nonprofit’s most costly expenses, while additional internal cost-cutting measures are underway. ACV’s other programs — including Advancing the Arts Grants, First Fridays of the Valley, Public Art initiatives, and the Smith House Galleries — are expected to continue without interruption.