Thomas Flynn and Henry Willard financed the construction of the Chatham Theatre in 1839. Under Flynn's management, the playhouse opened on 11 September 1839 with a production of "A New Way to Pay Old Debts" starring John R. Scott and Mrs. Thomas Flynn. It was essentially a neighborhood theatre at this time, and the effects of the Panic of 1837 were still being felt, so the establishment lost money. Nevertheless, Flynn and Willard kept it open for another year, staging comedies and dramas that starred popular actors, including James Anderson, William Rufus Blake, Junius Brutus Booth, and Mademoiselle Celeste. The theatre finally closed in January 1840 due to differences between the two owners.