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The name of the theater is indeed the Sharum Theater. It has been closed since I would guess the late 70’s. However, the owner of the theater bought it in the 80s and hired some people to do renovation work, but the people didn’t complete it and stole some stuff from it.
However there’s a “Downtown Walnut Ridge” organization that is trying to revitalize the downtown area, and it seems the theater will be one of their projects. I can only hope, at least. Here are two bits of info:
Article (from 2008):
Minutes from the organization, stating that cleanup has begun on the theater: