Option B: “there” represents a position, for example, “He was standing there.”. When used in this case, it will make a meaningful sentence which would mean that “The theatre is not at that place anymore.” Hence, this is the correct option.
Option A: “their” is sometimes confused with “there” because of the similar spellings and pronunciations. The difference is that:
“there”, with an “e”, is used to indicate position, for example, “She must have been there.”
“their”, with an “i”, is used to indicate possession or ownership, for example, “They went in their car.” 'Their' would not make any sense in the given sentence. Hence, it is incorrect.
Option C: “the” would not make a meaningful sentence. Hence, it is incorrect.
Option D: “they’re” is the shortened form of “they are”. This is meaningless in the given case. Hence, this option is incorrect.