The theater's roof and walls were partially destroyed during World War II. During the post-war period, it was misused as a boxing arena, low-quality motel, gay bar, basketball court and as a home for squatters. In 1978, a restoration of the theater was initiated by the then Governor of Metro Manila Imelda Marcos which was headed by Otilio, the nephew of Juan Arellano. Its prestige as a cultural center was redeemed but proved to be short-lived. It closed down its doors again in 1996 because of conflicts of ownership between the Manila City Administration and the Government Service Insurance System (GSIS). In 2010, President Gloria Macapagal-Arroyo and Manila mayor Alfredo Lim tried to revive the theater but to no avail.