The Litomyšl Sokol organization had run a cinema in Litomyšl since 1924. However, films were shown in rented space at Smetana House, and the growing number of cinemagoers meant that a dedicated cinema building was necessary. Initially, it was thought that an existing building could be adapted for the needs of the cinema. Among buildings considered were the riding school or stables on the chateau hill, the meat market, the Veselka pub or a house called Peklo “Hell”. The builder Antonín Beba had actually prepared initial sketches for modifications to the latter building in 1920, an unusual design featuring a half-timbered house with a mansard roof.
In 1925, the Sokol organization decided in favour of a completely new building located within the courtyard area of the Hotel Hvězda near to Vodní Valy Street. The building project, which also housed the puppet theatre from 1926 with unique decorations and backdrops designed by the painter Karel Šťastný, was designed and built by the local construction company Vlach and Třesl. The cinema operated as Kino Sokol until 1948, when it was nationalized and renamed Kino Oko.
Substantial changes were made to the building in the 1970s, when it was reconstructed and modernized according to a project by the Prague architect and designer Jaroslav Šustr, a member of the Czech fund for fine-art. Despite complications resulting from a fire, the distinctive building, consistent with contemporary trends, deserves great merit. The designer put great accent on decorating the interiors in shades of red and blue. The interior fittings were atypical, including custom-made furniture in the cloakroom, ticket office and buffet, a unique semi-circular bench in the vestibule, custom-made doors, wall panelling and even minor details such as coat hooks, handles, etc. Šusta's design style was especially evident on the exteriors which were newly rendered, and included a louvered strip and metal flashings. Further additions were a small roof over the entrance, a wall for advertising showings, a fire escape with canopy, and unique neon lighting.
Traces of Šustra's original cinema project are, in spite of later modifications, still evident inside and out. The building is thus one of the last relatively authentic architectural achievements in Litomyšl from the Normalization period.
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