The theatre building was converted from a manège (riding school), located on the Tsaritsa Meadow (Russian: Царицын луг – Tsaritsyn lug, now Ploshchad Zhertv Revolutsii – The Place of the Victims of Revolution) near the present-day Tripartite Bridge.
In 1779 Knipper signed a contract with the Foundling Home that established the Volny Rossiysky Teatre (Вольный Российский Театр – The Free Russian Theatre).
Choreographer Gasparo Angiolini and ballet dancer Francesco Rosetti were briefly dance instructors.
On 12 July 1783 the Imperial Theaters acquired the building and later Knipper's German troupe as well, but the Free Russian Theatre was dissolved.
This existed until 1797, when it was dismantled at the demand of Paul I of Russia, because it was obstructing troop maneuvering during parades.