Exclusive: Avant Gardner and Brooklyn Mirage to Be Sold to Global Nightlife Brand Behind Pacha

By Scott Enman

The Dubai-based holding company for the global nightlife brand Pacha is expected to enter into a deal with Axar Capital Management on Thursday to buy Avant Gardner and turn its flagship venue, Brooklyn Mirage, into Pacha New York, according to an industry source with knowledge of the agreement.

The deal between Pacha’s parent company, FIVE Holdings, and Axar is expected to become official around 2 p.m. on the first day of the new year, the insider said. The sale follows a bankruptcy court approval for Axar, a longtime lender of Avant Gardner, to acquire most of the company’s assets, including the Brooklyn Mirage, at a bargain following a Chapter 11 filing in August. The firm was promptly sued by Mirage’s other lenders over alleged misrepresentations of its financial condition after the $110 million sale, according to Bloomberg.

It’s yet another strange and unforeseen turn in the Mirage saga, now seemingly reaching its fated conclusion. The outdoor East Williamsburg venue, which underwent a $30 million renovation last offseason, never opened due to failed safety inspections, and its parent company, after declaring bankruptcy, filed for demolition of the Mirage in October.  Shortly after the permits were submitted, the city’s Department of Buildings issued objections to Avant Gardner’s application for demolition. As of Wednesday—over two months later—the objections stamp remained.

The source, who asked to remain anonymous, said the sale isn’t simply a change of ownership, but rather a broader shift in how financial power is reshaping cultural institutions at the expense of the music community and fans.

“This will have a lasting impact on the New York electronic music market, positioning the Dubai-funded Pacha brand to steamroll independent promoters in the city with inflated talent offers even while consumers are still owed refunds from Electric Zoo and canceled Mirage shows,” the insider said. “[It’s] yet another example of the dangers of hedge funds entering the electronic music and nightlife landscape.”

The original Pacha nightclub, an iconic venue in Ibiza, previously attempted to create a footprint in New York City back in 2005. Pacha NYC, the North American branch of the brand, operated for 10 years inside a massive building in Hell’s Kitchen before shuttering in January 2016. Its parent company is no less plagued by legal issues. FIVE Holdings is owned and run by Kabir Mulchandani, an Indian businessman who was arrested in Dubai on accusations of fraud and embezzlement in 2009. He spent 140 days in jail before ultimately being cleared of all charges.

BKMAG has reached out to Avant Gardner and FIVE Holdings for comment.