After “several months of financial distress,” Avant Gardner, the operator of East Williamsburg music venue Brooklyn Mirage, filed for bankruptcy on Monday. In a statement posted on Instagram, the company said it filed for Chapter 11. While the Great Hall and Kings Hall venues are set to remain open throughout the process, the Brooklyn Mirage—whose grand May reopening was abruptly canceled just hours before its first show and remains closed—will not reopen this year.
According to the post, the company’s decision to file for Chapter 11 followed “several months of financial distress,” with the failed reopening of the newly constructed Brooklyn Mirage ultimately pushing it over the edge.
Avant Gardner said it plans to enter into a “stalking horse” purchase agreement in which the company will sell its assets to an entity formed and controlled by its existing lender.
Gary Richards, who took over as CEO following Wyatt’s departure, told Bloomberg on Monday that the timing of the bankruptcy coincides with “increasingly aggressive collection activities” from certain financiers and contractors.
“Two months ago, I was brought in as CEO to rebuild the Company’s culture and turn the business around,” Richards said. “I believe this Chapter 11 restructuring is the most viable path forward — it will allow us to stabilize Avant Gardner and focus on building for the future.”
The revamped Brooklyn Mirage features upgraded sound systems, an expanded dance floor, and other renovations—but for the roughly 90,000 people who still hold tickets, they won’t be able to experience it until at least next year. Its reopening was scheduled for May 1, but was canceled hours before due to the venue failing a city inspection.
Later that month, Brooklyn Mirage CEO Josh Wyatt—hired to help rebrand Avant Gardner—was fired after less than nine months in the role, according to Brooklyn Magazine. Wyatt had previously told the outlet that the Mirage would “100 percent” be open for its May 1 show. Since then, at least 17 artists have canceled or rescheduled their shows at the venue, many of which had already sold out.
The court filing reveals that the Mirage project was “beset by delays and cost overruns,” prompting the company to expend “significant resources” and enter high-interest financing arrangements to complete the renovations in time. In recent months, the company has taken out several loans and cash advances, including a $1.5 million loan for “improvements to the property,” as reported by the Brooklyn Paper.
It has also faced fines related to drug use and safety issues at its venues, including several overdose deaths in recent years, one of which involved a victim who reportedly purchased drugs from someone inside the venue, according to Gothamist.
The company was also behind the failed 2023 Electric Zoo festival, which led to a class-action lawsuit after the first day was abruptly canceled and some attendees were denied entry.
Court filings show that Avant Gardner owes more than $155 million in “funded secured debt obligations,” or debt tied to its assets. It also owes $6.5 million in taxes and roughly $800,000 in employee wages, contractor obligations, or other labor-related expenses.
These debts include more than $6 million owed to various live events companies, with roughly $2.1 million due to HEINI, a construction firm known for designing and building spaces for Central Park SummerStage and the South Street Seaport’s Pier 17.
The filing outlines a plan to borrow roughly $45 million to keep the business operating during bankruptcy proceedings, including $20 million to address existing debts. Avant’s key lender, Axar Capital Management, has agreed to provide $45.8 million in debtor-in-possession financing, which it will use—alongside other obligations—to bid for the company’s assets, according to Bloomberg.
Avant Gardner is currently in a remediation plan with the city’s Department of Buildings to get the venue open.
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