The sale follows a March announcement from the theater operator, which framed the divestment as a necessary move to bolster its capital structure. By shedding the Manhattan asset, the company aims to curb interest expenses and secure liquidity across its diverse international portfolio, which spans the U.S., Australia, and New Zealand.

This move comes amid a period of contraction for the local cinema industry, highlighted by the planned year-end closure of the Kips Bay AMC theater. While Reading International continues to manage brands like Angelika and Consolidated, the liquidation of the Third Avenue location reflects a tactical pivot toward monetizing select holdings to navigate current financial pressures.