The Dubai-based holding company behind the global nightlife brand Pacha is expected to acquire Avant Gardner and rebrand the Brooklyn Mirage as Pacha New York, according to BKMAG.
The deal between Pacha’s parent company, FIVE Holdings and Axar Capital Management is expected to become official on Jan. 1, the news site reported.
The transaction follows bankruptcy court approval allowing Axar, a longtime lender to Avant Gardner, to acquire most of the company’s assets, including Brooklyn Mirage, at a discounted price after Avant Gardner filed for Chapter 11 bankruptcy in August. Following the $110 million sale, Axar was sued by other Mirage lenders, who alleged misrepresentations about Avant Gardner’s financial condition, according to Bloomberg.
The deal marks another unexpected turn in the ongoing Brooklyn Mirage saga. The East Williamsburg outdoor venue underwent a reported $30 million renovation last offseason but never reopened after failing safety inspections. After declaring bankruptcy, Avant Gardner filed permits in Oc. seeking approval to demolish the Mirage.
Shortly afterward, the city’s Department of Buildings issued objections to the demolition application, which, as of Wednesday, remained unresolved more than two months later.
Pacha, founded in Ibiza and long regarded as one of the world’s most iconic nightclubs, opened in Hell’s Kitchen in 2005 and operated for a decade before closing in January 2016.
FIVE Holdings is owned by Kabir Mulchandani, an Indian businessman who was arrested in Dubai in 2009 on fraud and embezzlement accusations, spent 140 days in jail and was later cleared of all charges.
