As previously reported, the planned sale of Brooklyn Mirage to Ibiza-based Pacha brand had stalled after new court filings revealed disputes over an alleged “secret” side deal that would divert future profits away from creditors and laid-off workers. Apparently, the sale committee was shocked to find out about the rebrand, associated with Dubai-based FIVE Holdings, the company that owns the Pacha brand, at the same time as the rave-minded public when an “insider source” tipped off Brooklyn Magazine.
Amid the chaos, dozens of outlets reported on what looked like a growing legal battle in bankruptcy court. The committee withdrew its support for the sale, meaning progress stalled.
As of Wednesday, the uncertainty appeared to be resolved. FIVE Holdings issued a press release confirming that Brooklyn Mirage will enter “a bold new era as Pacha New York.”
“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,” Andrew Axelrod, CEO of Axar Capital, the firm behind the sale of the Mirage, wrote.
Kabir Mulchandani, chairman and CEO of FIVE Holdings, shared his excitement for the Pacha brand and its parent company.
“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,” Mulchandani wrote. “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.”
How and to what extent the claims of the creditors were addressed as well as the new structure of the deal remain unclear.
Read Unmixed’s coverage of the dispute.
Pacha New York would mark the Ibiza-based electronic music brand’s first U.S. location since the closure of its previous Hell’s Kitchen outpost, which shut down in 2016 after a 10-year run.
“At its core, Pacha New York is a statement: that nightlife can be culturally meaningful, globally connected, and locally rooted all at once. A stage for artists. A home for music lovers. A new chapter in an over 50-year legacy of dancing together,” the release says.
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