From the company's website:
After 43 years in business, New Yorker Films has ceased operations.
We would like to thank the filmmakers and producers who trusted us with their work, as well as our customers, whose loyalty has sustained us through the years.
And yes, the film library is being auctioned off; I assume the same will be true for home video rights licensed through other companies, including Zeitgeist and Milestone.
New Yorker also handled U.S. video sales for Canada's Project X Distribution, which helped create a new audience for the work of Peter Watkins, one of my favorite directors. (Your Projectionist just sent the director of The War Game, Edvard Munch, and La Commune [Paris 1871] a note about the New York Times story.)
Janus, Kino International, Zeitgeist… it's up to you now.