The American Musical Theatre of San Jose has announced that it has ceased operations after the cancellation of the musical Tarzan by its co-producer Atlanta's Theater of the Stars. The theater is planning to still present the national tour of Chicago next month and hopes to present the national tour of Avenue Q in March, but will put on no other productions.

In a statement, AMSTJ chief financial officer Robert Nazarenus stated that the theater was counting on two million dollars from Tarzan, and also alleged that a six-figure sum given to Theater of the Stars for that production had been spent by the Atlanta theater on a different show. The theater intends to pursue legal action.

Without responding to the specific allegation, Theater of the Stars issued a release saying that the current "economic turmoil" had affected its cash flow and made it impossible to continue with Tarzan and the show would be indefinitely postponed. In addition, the theater's president, Mark Manos, said it would work with the affected theaters on repayment plans for any preproduction advances.