The stage and school, where actors such as Dustin Hoffman and Gene Hackman got their start, opened in 1925 and had been California's official theater for 65 years.
The playhouse closed in February and laid off its entire staff of 37. It filed for Chapter 11 bankruptcy in May, with $23 million in debt.
Executive director Stephen Eich said a $1 million pledge from a group of donors allowed the playhouse to come up with a plan.
