Nearly every economic industry has taken a hit to profitability in recent years. Surprisingly, the entertainment industry continues to keep its head above water even when other forms of consumer spending have dwindled.
However, one popular Los Angeles night club may soon find its dance floor empty if it cannot resolve its financial problems.
The Sound Of Silence
Exchange Los Angeles is one of the city’s most happening dance clubs. Known for hosting celebrities and the top named DJs in the world, Exchange is anything but your run-of-the-mill night club. With its ability to host a massive 1500 party goers at once, this club is always packed to the walls. So how did its future end up in jeopardy?
Once the epicenter of the areas Stock Exchange transactions back in the early 1900s, this building has been under many renovations and historical preservation projects. The club’s holding company is battling with the landlord over the need for additional repairs and renovations. Hawkeye Entertainment LLC filed for Chapter 11 bankruptcy last week in efforts to protect its lease agreement while battling the ultimatum of implementing some $1.64 million in improvements. If the company can’t win its suit against these required building improvements or find funding for the project and city permit costs, Los Angeles party goers could lose one of the city’s famous venues.