Atlanta night spots come and go and it seems the hot ones only have about a 3 year lifespan. ?Needless to say, it wasn’t a surprise when we had to officially say ‘goodbye’ to Vanquish & Reign a few months back.
The two ATL hotspots which were located in midtown Atlanta, took years to open it’s doors, battling neighbors and nearby developers in the process.
With millions of dollars invested in the popular party spot, which opened in 2011, club owner Michael Gidwon is facing bankruptcy and blames his former landlord for the club’s demise.
Michael Gidewon (pictured), who along with his siblings, has launched local several nightclubs that sparked Atlanta’s well defined social scene but it was Vanquish and Reign’s opening in mid-2011, that sealed the deal on Peachtree street.
Party-goers waited in long lines, celebrities kicked back in VIP sections, and bottles popped all night long at the hot spot but now the party is over and the future of the property hangs in limbo.
The clubs, which sit adjacent to one another, have sat empty since last September and Michael Gidewon has filed for bankruptcy.
According to a recent article in Creative Loafing, Gidewon blames legal issues surrounding the club for his financial setback.
According to a statement from Gidewon?s lawyer, Tyler Henderson, and attributed to Gidewon, Vanquish and Reign?s abrupt end dates back to the bitter three-year ? and approximately $400,000 ? legal battle the club owners fought against Midtown neighbors who feared the hot spots would attract noise, crime, and litter.
[Sidebar: Gidewon started the build out back in 2009 but the club didn’t open until 2011 due to the court battle.]
The former landlord, Dewberry Capital, also plays a role as well, as Gidewon claims they made unreasonable adjustments to the rental rate for the Peachtree property. Dewberry is one of several creditors listed in Gidewon’s bankruptcy, which was filed last December showing $7.5 million owed to creditors.
According to Gidewon, he and his partners paid approximately $500,000 in rent to Dewberry during the years that the club sat empty and the owners’ case wound its way through the legal system.
When the lease term ended, Dewberry jacked up the rent 100 percent, Gidewon claims. Dewberry’s “refusal to grant rental concessions [ultimately] made it impossible for the nightclubs to continue to operate.”
“Dewberry Capital, LLC, in fact demanded additional rent increases in response to the [owners’] rental concession requests,” Gidewon wrote in the emailed statement. (source)
The landlord “consistently” operated under the “clearly defined,” agreed-upon lease terms. The two parties renegotiated the lease in July 2011, when Reign opened its doors, and again in December 2012.
The club owners asked to “significantly alter” the lease around February 2014, but “an agreement was unable to be reached.”
Gidewon is notably disappointed in the outcome and further states through his attorney that the club owners appreciate the opportunity to have entertained Atlantans and visitors.
While Vanquish and Reign are now closed, the memories created will at these legendary nightclubs will last for many years.
What do you think about the closing of Atlanta hot spots Vanquish & Reign?
Do you miss the popular midtown nightclubs?
Photos: Prince Williams (ATLPics) + Creative Loafing