ALONG with seediness, palm trees and the bay, St Kilda's story is defined by fire.

Several of its icons have gone up in flames, including the sea baths, pier kiosk, St Moritz ice rink, Palace nightclub, Palais de Danse and Luna Park's Giggle Palace. And the Palais Theatre - about to celebrate its 85th anniversary with a series of short plays - owes its existence to a spectacular blaze.

In 1926, US architect and Canberra designer Walter Burley Griffin was putting the finishing touches on the Palais de Danse - the second hall of that name - when it burnt down. In its place, Henry E. White built the grander Palais Pictures.

''It was built just at the right time,'' says Palais chief executive and veteran music promoter, Neil Croker. ''In the Depression, the trend was for 'atmospheric' theatres with magnificent foyers and lighting effects. If you look at Her Majesty's or the Princess, their foyers are basically the street.''

Since taking control in 2007, Mr Croker has lifted the number of shows from 20 to 100 a year, supplementing its rock line-up with comedy, ballet and classical music. He has breathed new life into the old dame, replacing carpets and patching the roof. (Natalie Merchant reportedly played with a bucket behind her piano.)