Last year, Save The Futurist Theatre (Scarborough) Ltd was ordered to pay the council £10,000 following an unsuccessful legal challenge against the demolition of the building.
That money has not been paid and at today's cabinet meeting Cllr John Nock told councillors that lawyers acting on behalf of the company were not responding to calls or letters from the council.
Cllr Nock said: "This is in legal hands and, as everyone knows, legal wheels turn very slowly.
"We have made recent communications to their solicitors who, unfortunately, continue to fail to respond.
"We will be taking steps to recover this debt and this may include taking action against individuals if it is found that the company acted improperly in administering its funds following the court order."
Earlier this year, Scarborough Council leader Cllr Derek Bastiman said the council would push to recover the money.
He said: "These were costs borne by the council tax payer and we will be taking steps to ensure these costs are recovered in full. It is disappointing, to say the least that the group has failed to comply with the court order."