The theatre opened on June 16, 1941 as the Avalon Theatre, a 770-seat neighbourhood cinema built for accessibility, routine entertainment, and the growing post-war population of Hamilton’s east end. Operated by United Amusements, it quickly became a local fixture. At the time of its opening, Saturday matinees were part of the rhythm of neighbourhood life — tickets costing just 18 cents for children and 35 cents for adults — making it one of the most affordable and popular forms of entertainment in the city.

Its opening night featured Vivien Leigh in That Hamilton Woman, setting the tone for a theatre that balanced Hollywood prestige with everyday community use. For decades, the Avalon remained a steady presence on Ottawa Street, shifting through ownership changes as United Amusements was later absorbed into Famous Players, reflecting the broader consolidation of Canadian cinema chains in the mid-twentieth century.

In 1969, the theatre was renamed the Avon Theatre, marking a new chapter in its identity while maintaining its role as a neighbourhood film house. Through the 1970s and into the early 1980s, it continued to serve local audiences, offering a traditional cinema experience at a time when suburban multiplexes were beginning to reshape moviegoing habits.

The theatre ultimately closed in the mid-1980s, with its final run often cited as March 22, 1987, screening Sylvester Stallone in Over the Top. After closing, the building was converted for retail use, ending its life as a cinema but preserving the structure along Ottawa Street’s evolving commercial corridor.