The burgeoning film industry caused many of the theaters in Playhouse Square to close up, and in a very short while they fell into disrepair. It would be decades before people really took serious notice of them again. In the 1970s, a civic organization formed to raise money and fix up the theaters, turning them into prized arts and entertainment centers. They regained their former opulence and grandeur and are now enjoyed by the entire town.
The Palace Theatre is one of the many theaters that established themselves in what came to be known as Playhouse Square in the 1920s. They were the Allen, the Ohio, the State, the Palace and the Hanna. The rash of theaters earned the stretch of streets the name of Playhouse Square. All of them specialized in vaudeville, silent films and other forms of entertainment.