As part of the ABC chain, the cinema was eventually absorbed by Odeon, in a merger undertaken by the private equity firm Cinven.

With another Odeon nearby on Broadmead's Union Street, the decision was taken to close down and sell the Whiteladies in 2001 with a restrictive covenant forbidding its future use as a cinema.

The building was allowed to deteriorate and was on Bristol City Council's "at Risk" register, deeming it to be in danger of being lost due to lack of use, under-use, disrepair, or dereliction.

The most recent planning application to convert the building into a gym and flats was rejected by Bristol City Council, went to appeal and was finally defeated in March 2013.

[4] In November 2010 a not-for-profit company, Whiteladies Picture House Ltd, was set up by Alan Mandel Butler and David Fells (manager of the local Redgrave Theatre) to raise awareness of the building and its history and to begin the journey of raising the necessary capital to reopen the Picture House as a mixed-use venue with a 450-seat theatre and a 200-seat cinema.

In 2013, Alan Mandel Butler left the company to pursue other projects and David Fells began working with Jonathan Lees Architects to develop plans to preserve the existing historic fabric of the building, including the original Art Deco auditorium.