After losing its downtown location, Theatre 138 joined Walk-Ons Inc at Center Stage Theater, formerly Andy’s Smorgasbord.  For a year and a half the theater companies shared the space and the expenses of buying the building, but produced their own shows in alternating time slots.  Center Stage Theater closed with the sale of the building on 1 August 1989, cutting a three-week run of Romeo and Juliet to only four days.  Both theater companies dissolved.

"There were a lot of things involved,” explained  Ariel Ballif of Theatrre 138. “The biggest was the financial problem. It didn't make much sense to keep going into the hole every month. There were not enough seats, unless it was full every night, to meet expenses. We kept pushing it for the time we were there and kept trying, but it finally became a reality that we just couldn't handle it any more. There was also the problem in two groups trying to operate in the same space. Those things just didn't work out."^[1]

1. "Salt Lake’s first ‘alternative’ theater company", (Web Site), 3 March 2011