He is in the the movie theatre section.
When you go in the movie theatre there will be a ton of the yellow guys and it's easier if you kill them all. The best way to kill them is with the gun that is above the door to the warehouse. You go up the stairs to the right and jump up onto that ledge and make your way all the way to the end. Then when you are close, but not close enough for them to attack you can peg them off one at a time. So, you enter the Theatre and you go straight to the end and around the corner to right is where a whole bunch of these yellow dudes should be and then you want to go in the next theatre door on your right.
I strongly suggest fighting the boss with the chain saw and some wine or O.J. So if you killed the clown Adam already, you can always go back to the rollercoaster in Wonderland Plaza to get the chainsaw. It lasts way longer than the ones in the Hardware Store. Once you kill the boss, just be sure to check everything so you don't miss something.
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