The owner of iconic New York nightclub Brooklyn Mirage has filed for bankruptcy.
Avant Gardner had failed to re-open the club in East Williamsburg after conducting an expensive renovation following two grisly murders of its club clients in 2023.
Brooklyn Mirage was meant to reopen in May but was beset with delays, permitting issues and spiraling costs.
Part of the reopening were proposals to improve safety for its customers.
The closure of the famed nightclub was ‘catastrophic’ to Avant Gardner’s finances, the company’s CEO Gary Richards said in a court filing posted this week.
The company filed for Chapter 11 bankruptcy in Delaware citing $155.3 million in debt, Bloomberg reported.
Brooklyn Mirage will likely be auctioned off with the company’s other assets in order to repay creditors.
One of the company’s major creditors has already indicated that it will use $45.8 million in debtor-in-possession financing to bid for assets.
The owner of iconic nightclub Brooklyn Mirage has filed for bankruptcy
On April 29 Avant Gardner were informed by New York City building inspectors that it was revoking its temporary permit.
Despite a number of follow-up meetings the nightclub was not able to get a new one, Richards said in the legal filings.
Richards also blamed builders for construction problems during the renovation as well as ‘increasingly aggressive collection activities’ from creditors.
Richards, a former DJ and veteran of the nightclub scene, only took up his post two months ago.
‘Two months ago I was brought in as CEO to rebuild the Company’s culture and turn the business around,’ Richards said in a statement.
‘I believe this Chapter 11 restructuring is the most viable path forward.’
Prior to that the company had run into major trouble after hosting the Electric Zoo Festival in 2023.
The first day of the event was cancelled on short notice and other festival attendees were refused entry.
CEO Gary Richards took up the post two months ago
John Castic (left) and Karle Clemente (right) were both murdered after attending the nightclub in 2023
The failure to reopen the Mirage was ‘catastrophic’ to the company’s finances
Avant Gardner was then hit with a class action lawsuit as a result.
The issue came just months after two people, who had attended Brooklyn Mirage that night, were found murdered on separate occasions not far from the venue.
A spokesperson for the nightclub said at the time that ‘while both incidents are extremely tragic, it remains our position that we do not bear responsibility.’
‘Both deaths were unfortunate accidents which took place blocks away from the venue and not on an Avant Gardner property.’
Avant Gardner did not immediately respond to the Daily Mail’s request for comment.
