Pacha New York: FIVE Holdings Buys Brooklyn Mirage

Estimated reading time: 3 min

FIVE Holdings rescues Brooklyn Mirage from bankruptcy

FIVE Holdings closed its acquisition of the Avant Gardner and Brooklyn Mirage complex from Axar Capital on January 1, 2026, pulling the East Williamsburg venue out of a Chapter 11 bankruptcy filing lodged in August 2025. (Original source) The bankruptcy followed a $30 million renovation earlier that year and ongoing construction permit disputes that kept the complex shuttered through the 2025 summer season. (Pacha NYC to Close After Decade of Dance: End of an Era for New ...) Lenders subsequently sued Axar and three board members over alleged misrepresentations of the venue's financial condition, according to Bloomberg.

The deal transfers control from a distressed-asset investor to the Dubai-based parent of The Pacha Group, which plans to rebrand the multi-space complex—formerly encompassing Great Hall, Kings Hall, and the outdoor Brooklyn Mirage—as Pacha New York. The move resurrects the Ibiza superclub brand in the city a decade after the original Pacha NYC closed in early 2016 following a ten-year run that drew more than six million guests.

Pacha New York to replace Avant Gardner complex

FIVE Holdings' acquisition extends the Pacha brand into the US market through a distressed-asset route, shifting the complex from pure real-estate leverage to an operational superclub model. (The Pacha Group - Wikipedia) Pacha Ibiza's recent center-booth redesign and residency-led programming—anchored by weekly nights like Solomun +1 and Music On—signals the template likely to inform Brooklyn booking strategy. (Inside NYC's LEGENDARY Nightclub Scene That Changed Music ...) The East Williamsburg site's multi-room configuration and festival-scale capacity position it closer to a quasi-festival venue than the original 618 West 46th Street club, which operated from roughly 2005 to 2016. (Original source)

The move reflects how Gulf-backed hospitality capital is reshaping NYC's upper-tier nightlife infrastructure, stepping in where domestic lenders and operators have faltered under regulatory and construction pressures. Demolition permits filed in October 2025 suggest substantial structural work ahead, though the scope of renovation versus tear-down remains undisclosed. (Pacha NYC to Close After Decade of Dance: End of an Era for New ...)

Gulf capital reshapes NYC superclub landscape

Gulf leisure capital is reconfiguring ownership at the top of New York's club infrastructure. FIVE Holdings—whose portfolio spans Pacha Ibiza, Destino, and integrated party hotels—brings a hospitality-first operational model distinct from Axar Capital's distressed-asset approach. The shift suggests a pivot from extracting short-term real-estate value toward sustaining multi-year programming anchored by international brand equity. The transaction highlights how large-format electronic music venues in constrained regulatory environments increasingly rely on overseas investment to absorb capital risk. Where local lenders balked—Bloomberg reported litigation over "alleged misrepresentations" of balance-sheet health—Dubai-backed operators see strategic beachheads.

Sources

• Original source
• Pacha NYC to Close After Decade of Dance: End of an Era for New ... (2015-11-28)
• The Pacha Group - Wikipedia (2006-12-14)
• Inside NYC's LEGENDARY Nightclub Scene That Changed Music ... (2013-10-03)

How we reported this

We reviewed the original coverage from EGNews and cross-checked key details against the sources above. If something is unclear or changes after publication, we’ll update this post.

About the author

Tom Rander — is a journalist and electronic music specialist who has spent years documenting the intersection of club culture and technical innovation. With a background rooted in both the booth and the press room, Tom founded Rander.io to provide a more rigorous, expertise-driven alternative to mainstream music blogs.