LOS ANGELES (CelebrityAccess MediaWire) — The Knitting Factory has announced that they will be shuttering their Hollywood location after their lease expires at the end of October.
Knitting Factory CEO Morgan Margolis told Variety that they had made the decision to cease operating at the location due to steep rents and stiff competition.
"Our business has never really declined," Margolis told Variety. "We've attracted between 8,000-15,000 people a month. It's just never been a good business model in that location. The lease is very stiff, overhead is difficult with staffing and upper management, and competition in town makes it very difficult to meet our financial needs."
Hollywood has no shortage of clubs in the same niche as the Knitting Factory, including the Roxy, the Viper Room, HoB, The Troubadour and the Key Club to name a few. Additional challenges came from the necessity to book talent 7 days a week for each of the club's three performances spaces, which ranged in capacity from 75-600 people.
"That's how we went out the gate," Margolis told Variety "And the problem was we couldn't get enough people to come through the doors to cover the band guarantees."
This won't be the end of the Knitting Factory in Los Angeles however and Margolis confided to Variety that he is currently on the look-out for a more convivial location for the club. – CelebrityAccess Staff Writers