The retailer has owned and traded from the Art Deco former Rex theatre at the top of Sanger Street for 20 years.

Last November, the Melbourne-based chain stated it was closing, but it has now decided to stay open in the buildings that it owns.

However, a Dimmeys spokesman told The Border Mail yesterday that while the Corowa shop had been given a reprieve the firm wanted to solely trade in Victoria eventually.

"The business plan is to run in Victoria only, however where we own the building in other states we will continue," he said.

"We can't keep the building empty."

The spokesman said Dimmeys was keen to rent the premises to another business or sell the building.

Despite having been a store for at least two decades, the interior of the building still resembles a theatre with the stage remaining.

However, Federation Shire councillor Paul Miegel, who owned a pharmacy in Sanger Street until four years ago, noted the old theatre was rundown.

"There was talk at one stage of returning it back to its glory days as a theatre, but the amount of money needed would be quite a lot," Cr Miegel said.

"Unless someone's got a purpose for it, I don't know who would buy it."

The Rex theatre opened in 1936 and patrons included a young Mike Walsh, who became known to television viewers as a gold Logie-winning daytime host.

It was later used as a skating rink.

A 2012 Corowa environmental plan deemed it had local heritage status.