In July 1940 a protracted legal wrangle concerning the Tivoli came to a conclusion. Formerly, the Robert Arthur Company, had owned both the Tivoli and His Majesty's Theatre. When that company sold the Tivoli in 1933, they placed a restriction upon it stating that it was not to be used for the performance of stage plays and pantomimes. This measure was introduced in a bid to give His Majesty's a major advantage.

Efforts had been made without success to remove these restrictions, but it was presumed that the new proprietors could draw up amended articles excluding the constraints. The answer given by the Court of Session was "No". The Law Lords upheld an earlier decision of the Court of Session in favour of the Tivoli's new proprietors who subsequently drew up revised terms deleting the ban.

Ownership of the Tivoli passed from Aberdeen Varieties Ltd., to the William Galt theatrical syndicate in January 1954.

After a record-breaking 17 week summer season, the Tivoli faced closure in September 1963. The departing manager, Andrew Foley, stressed that there would be no structural alterations to the theatre, while erstwhile saviour, Calum Kennedy pledged to make every effort to re-open the building so that live entertainment might be preserved and sustained.

The theatre was indeed re-opened again for a two-week season on 23rd December 1963. A further "Spring Ceilidh" followed in April 1964.

The typhoid epidemic during the summer months of 1964 led to the cancellation of much live entertainment in the city. Sporadic but popular shows were mounted in late 1964.

1965 started gloomily, with the Tivoli in darkness for nearly five months. New hope however appeared on the horizon in June 1965 when it was announced that a consortium of seven prominent local businessmen has acquired the Tivoli and Dundee's Palace Theatre. Calum Kennedy was appointed managing director of Grampian Theatres Ltd., the new owners, whose declared aim was "to establish two theatres providing family-type entertainment of a high standard".

Over the next ten months or so, Calum Kennedy strived to stem the growing tide of public apathy by bringing major personalities to the theatre with their own shows. Stars such as Billy Cotton, Tony Hancock and Frankie Vaughan failed to attract the public away from their television screens.

Sadly, "All of Calum Kennedy's laudable and inspirational efforts to breath new life in to the theatre culminated on Saturday 2nd April 1966 when he presided over its final live performance".

A new taste in popular entertainment was inaugurated on 27th June 1966 with the introduction of the Tivoli Bingo and Social Club.