Brooklyn Mirage rebrands as Pacha New York under new management

The Brooklyn Mirage in East Williamsburg will reopen in June 2026 as Pacha New York, following a year of significant operational and financial difficulties that saw the venue remain closed throughout the entire 2025 season. FIVE Holdings, the Dubai-based hospitality group that acquired the Pacha brand in 2023, has assumed operational management of the Brooklyn Mirage and adjacent Great Hall complex through a long-term agreement with Axar Capital Management, the venue’s primary lender.

The announcement arrives after a turbulent twelve months for the 80,000-square-foot venue complex. In May 2025, the Brooklyn Mirage’s planned reopening following a substantial renovation was cancelled hours before doors were scheduled to open, with the New York Department of Buildings revoking the venue’s temporary occupancy permit over concerns that the structure was permanent rather than temporary. The failed opening, combined with cost overruns on the renovation project that ultimately exceeded $30 million, precipitated a liquidity crisis that led parent company Avant Gardner to file for Chapter 11 bankruptcy protection in August 2025, with debts totalling approximately $155 million.

The venue had faced regulatory scrutiny well before the bankruptcy filing. The New York State Liquor Authority has maintained ongoing concerns regarding what it characterised as “rampant” drug use at the facility, with multiple deaths connected to events at the venue and nearby Knockdown Center between 2018 and 2024. The authority had filed 23 disciplinary charges against Avant Gardner by the end of 2020, creating an operational environment complicated by both safety concerns and regulatory oversight.

Following the bankruptcy court’s October 2025 approval of Axar Capital’s $110 million acquisition of Avant Gardner’s assets, subsequent developments introduced additional complexity to the transaction. In January 2026, media reports disclosed that Axar had entered into discussions with FIVE Holdings regarding the property, information that appeared to surprise the committee of unsecured creditors. The creditors subsequently withdrew their support for the bankruptcy plan, alleging that Axar had negotiated terms with FIVE Holdings without proper disclosure to the court or creditors, and that the arrangement fundamentally altered the economic structure they had agreed to support.

The parties have since reached a settlement resolving the material disputes related to the bankruptcy proceedings, as reflected in recent court filings. FIVE Holdings states that the transaction represents a significant commitment to New York’s cultural landscape, with chairman and chief executive Kabir Mulchandani characterising the acquisition as central to the company’s global expansion strategy.

Kabir Mulchandani, Chairman & CEO of FIVE Holdings, says the move is a “defining moment” for the group’s global journey and a statement of long-term commitment to New York. Axar Capital’s Andrew Axelrod adds that key Chapter 11 matters are now resolved, enabling the transition to move forward in earnest.

Pacha New York will operate seasonally from June through October 2026, with programming intended to feature both established international artists and local talent. The venue’s first season will reportedly utilise a configuration closer to the Brooklyn Mirage’s original 2015 open-air design, with plans for more extensive LED installations and production infrastructure potentially deferred to 2027. The Great Hall will continue year-round operations as a multi-genre performance space. The organisation has committed to maintaining partnerships with local artists, collectives and promoters as part of its operational approach.

This marks Pacha’s return to New York following the 2016 closure of its previous Hell’s Kitchen location, which operated from 2005 until legal and financial difficulties forced its shutdown. The brand, which established its reputation through its Ibiza flagship opened in 1973, now enters a market where questions remain regarding outstanding refunds for cancelled Brooklyn Mirage events and the 2023 Electric Zoo festival, another Avant Gardner property that was discontinued following operational problems including overcrowding and a mid-festival cancellation.

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