KNOXVILLE, Iowa– The Grand Theater in Knoxville is facing foreclosure due to a hefty unpaid bill to a restoration company.

It started back in July 2024 when a roofing company was doing repair work on the theater’s roof. After a storm rolled through during the maintenance, the entire building suffered extensive water damage. Due to the damage, a restoration company had to come and make repairs. That is where things went south for the theater.

The theater’s insurance claim was denied, and the roofing company failed to take responsibility, though the tarps they had laid before the storm didn’t keep the water from coming in. Legal action was taken, but the court date wasn’t set until September 2026.

With neither party willing to pay the bill of $125,000 to the restoration company, the company was forced to put a lien on the theater. That forced the theater to raise $125,000 in a two-week span if they wanted to keep their theater — and that’s exactly what they did.

“The city of Knoxville, and the community of Knoxville, and the friends of Knoxville, and the friends of the Grand Theater and everyone have totally come together to raise enough money that we will be able to satisfy the lien that’s against the theater,” said Curt Schwanebeck, president of the Grand Theater Foundation. “We’re not quite there yet, but with the local manufacturing plants kicking in, with matching donations and everything, it’s just coming together really well.”

As Schwanebeck mentioned, the local manufacturing plans have had a huge impact in raising the full amount needed to satisfy the lean.

“The Pella Corp. Foundation stepped up and was matching, and still is matching, funds up to $15,000,” Schwanebeck said. “Then also for their retirees and employees, there is an incentive there to give it to a nonprofit type of organization like the Grand Theater. Weiler’s just south of town here, stepped up in a big way and is doing the same thing. And they’re matching funds through Saturday.”

Though the theater hasn’t raised the full amount yet, after talks with lawyers and the restoration company, they will be allowed the extra time to pay the full amount. Schwanebeck said that moviegoers won’t notice a difference as the theater will remain open during the process.

For now, the Knoxville Grand Theater will remain a place for residents of the community to continue to make lifelong memories.