Hello Astonite,
Great to see a picture of the old bug hole again, I often frequented it as a kid and have posted some thoughts about it on the cinemas thread.
I think that the picture was probably taken at the start of the 60's rather than late 50's becuase I lived in the Street opposite, New John St West, until 1958/59 and there was certainly no verge with plants in it opposite the cinema. The whole area was completely built up and a pub, was it the Vine? stood on the corner where you can see the traffic lights. I don't remember any traffic lights there in my time, although there was a zebra crossing on which I got knocked over once on the way home from school.
Thanks again for posting the pics great to see them once more. I have a vague memory that it may have become a cinema once more at some stage specialising in Asian films. Although this may be a figment of my imagination since I have lived in Essex since 1981 and only saw the Palace in passing when visiting relatives in Brum.
have got a couple of pictures of the area