When she returned to Hollywood in 1931, she was cast in two mainstream films: God's Gift to Women (1931) and It Pays to Advertise (1931). Her performances in these films, however, were largely ignored, and few other job offers were forthcoming due to her informal "blacklisting".
Despite this, William Wellman, her director on Beggars of Life, offered her the female lead in his new picture, The Public Enemy starring James Cagney. However, Brooks turned down the role in order to visit her then-lover George Preston Marshall in New York City, and the part instead went to Jean Harlow, who began her own rise to stardom largely as a result. Brooks later explained herself to Wellman by saying that she hated making pictures because she simply "hated Hollywood", and according to film historian James Card, who came to know Brooks intimately later in her life, "she just wasn't interested .... She was more interested in Marshall". In the opinion of Brooks's biographer Barry Paris, "turning down Public Enemy marked the real end of Louise Brooks's film career". She made one more film at that time, a comedy short, Windy Riley Goes Hollywood (1931), directed by Hollywood outcast Roscoe "Fatty" Arbuckle, working under the pseudonym "William Goodrich".
Brooks declared bankruptcy in 1932 and began dancing in nightclubs to earn a living. She attempted a comeback in 1936, and did a bit part in the Western Empty Saddles, which led Columbia to offer her a screen test, contingent on appearing in the 1937 musical When You're in Love, uncredited, as a specialty ballerina in the chorus. She made two more films after that, including the lead opposite John Wayne in Overland Stage Raiders (1938), a "B" Western in which she played the romantic lead with a long hairstyle that rendered her all but unrecognizable from her Lulu days.
Brooks then briefly returned to Wichita, where she was raised. "But that turned out to be another kind of hell," she said. "The citizens of Wichita either resented me having been a success or despised me for being a failure. And I wasn't exactly enchanted with them. I must confess to a lifelong curse: My own failure as a social creature." After an unsuccessful attempt at operating a dance studio, she returned East and, after brief stints as a radio actor and a gossip columnist, worked as a salesgirl in a Saks Fifth Avenue store in New York City for a few years, then eked out a living as a courtesan with a few select wealthy men as clients.
I found that the only well-paying career open to me, as an unsuccessful actress of thirty-six, was that of a call girl ... and (I) began to flirt with the fancies related to little bottles filled with yellow sleeping pills.
Brooks had been a heavy drinker since the age of 14, but she remained relatively sober to begin writing about film, which became her second career. During this period she began her first major writing project, an autobiographical novel called Naked on My Goat, a title taken from Goethe's Faust. After working on the novel for a number of years, she destroyed the manuscript by throwing it into an incinerator.
She was a notorious spendthrift for most of her life, and was kind and generous to her friends, almost to a fault.
"There is no Garbo! There is no Dietrich! There is only Louise Brooks!"Henri Langlois, 1953
French film historians rediscovered her films in the early 1950s, proclaiming her as an actress who surpassed even Marlene Dietrich and Greta Garbo as a film icon, much to her amusement. It would lead to the still ongoing Louise Brooks film revivals, and rehabilitated her reputation in her home country.
James Card, the film curator for the George Eastman House, discovered Brooks living as a recluse in New York City about this time, and persuaded her to move to Rochester, New York to be near the George Eastman House film collection. With his help, she became a noted film writer in her own right. A collection of her writings, Lulu in Hollywood, was published in 1982. She was profiled by the film writer Kenneth Tynan in his essay, "The Girl With The Black Helmet", the title of which was an allusion to her fabulous bob, worn since childhood, a hairstyle she helped popularize.
She rarely gave interviews, but had special relationships with film historians John Kobal and Kevin Brownlow. In the 1970s she was interviewed extensively, on film, for the documentaries Memories of Berlin: The Twilight of Weimar Culture (1976), produced and directed by Gary Conklin, and for the documentary series Hollywood (1980) by Brownlow and David Gill. Lulu in Berlin (1984) is another rare filmed interview, produced by Richard Leacock and Susan Woll, released a year before her death, but filmed a decade earlier. Author Tom Graves was allowed into Brooks' apartment for an interview in 1982, and later wrote about the at times awkward and tense conversation in his brief book "My Afternoon With Louise Brooks."