Palace Theatre

The Palace Theatre was a long-running sound era theatre in downtown Grandbury. Manager M.H. “Leo” Shanley opened the theatre May 1, 1931 in the Shanley Building on Pearl Street on the south side of the Grandbury’s commercial square. The theatre struggled and closed in December of 1932 prior to two years of operation.

The Strand Theatre - which had been on the West Side of the square decided to move to the larger Palace Theatre and kept the Palace nameplate. The Strand Theatre operators positioned the Palace Theatre as a sub-run discount house.

Beginning in 1958, the Palace Theatre closed for the summer months as the six-year old Brazos Drive-In Theatre was the main theater for the city during the summer. The Palace Theatre closed for the season on March 29, 1974 with “Funny Car Summer” and never re-opened.

Jim and Margo Johnson would then create an indoor theatre, the Cinema Theatre, adjacent to their Brazos Drive-In for year-round operation beginning in 1977. As for the former Palace Theatre, in 1976, Dallas-based architect Ed Beran reimagined the space as three retail businesses including the long-running Cuckoo’s Nest Restaurant.

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