The Peekskill Daily Voice was first to break the news on Oct. 3 that the center would immediately cease operations due to financial hardship.
The city owns the Paramount building but performances and operations were run by a 501(C)(3) non-profit organization that had also been responsible for the recent renovations of the theater. The group has since been dissolved.
The news left residents stunned and drew concern from downtown restaurant owners who depended on the theater to help draw diners.
The city has received several bids from interested parties looking to run the establishment, and will award the rights to one of the groups in the coming months.