The Brooklyn Mirage saga has taken another twist with the announcement that the beleaguered nightclub has been acquired by Dubai-based hospitality and retail group FIVE Holdings. The news follows a laundry list of issues at the space related to permitting, bankruptcy and eventual plans for demolition that endured through much of 2025.
Under this new ownership, the Brooklyn Mirage will become the newest location of Pacha, the clubbing institution with a longstanding flagship location in Ibiza. Pacha New York City will be the second time the Pacha brand has franchised to New York, with the first Pacha New York location open from 2005 to 2015 under different ownership.
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On Tuesday (Feb. 3), FIVE Holdings announced that it has entered into a long-term agreement assuming full operational management of the Brooklyn Mirage and The Great Hall complex, two of three spaces in the Avant Gardner complex. FIVE Holdings acquired The Pacha Group itself in 2023 in a deal valued at $330 million. (Pacha clubs in Barcelona and Munich are franchised venues and were not involved in the sale.)
The Brooklyn Mirage is now set to open in June and host a 2026 season ending in October, with the new operators promising “the world’s most sought-after electronic artists, Grammy-winning performers, and large-scale shows rarely seen in New York City, delivered with the production depth and ambition the culture deserves.” Meanwhile, the Great Hall complex will continue to operate year-round as a multi-genre venue.
The news marks a dramatic turn for the Brooklyn Mirage, which was, as of last October, set for demolition after the owners filed for Chapter 11 bankruptcy in August, according to public records. The club had been scheduled to reopen in May after a comprehensive remodel, but it never opened its doors due to ongoing permitting issues.
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As Billboard reported last June, Andrew Axelrod’s Axar Capital had been a secured creditor of Avant Gardner — the Brooklyn nightclub company that booked and managed the Brooklyn Mirage, Kings Hall and the Great Hall — since late 2023 and had been leading unsuccessful efforts to reopen the venue.
In a statement, Axelrod said: “After supporting Avant Gardner through a challenging period in 2025, we are pleased to have achieved an agreement in principle with the Committee of Unsecured Creditors resolving all material matters related to the Chapter 11 plan and sale transaction, as reflected in yesterday’s filings in the U.S. Bankruptcy Court With these matters now resolved, the transition to FIVE and Pacha can move forward in earnest.”
Pacha New York City will be the first U.S. project from FIVE Holdings, which, in addition to Pacha Ibiza and a nearby Ibiza hotel, also encompasses a namesake hotel brand with three locations in Dubai and a property in Zurich, Switzerland.
“New York — the financial and cultural capital of the world — represents more than a market expansion for FIVE and Pacha; it marks a defining moment in our global journey,” added FIVE Holdings chairman and chief executive Kabir Mulchandani. “This move reflects the strength of our vision, the resilience of our platform, and our ambition to help shape the future of entertainment on a global stage. We are entering a city that influences how the world thinks, creates, and connects — and we do so with bold imagination, long-term commitment, and the confidence to build destinations that resonate far beyond their physical walls. For us, New York is not simply a new chapter — it is a statement of intent about the scale of our aspirations and the cultural impact we are here to create.”
