A federal bankruptcy judge has approved the sale of Avant Gardner — the company behind Brooklyn Mirage and the troubled Electric Zoo festival — to its primary lender for at least $110 million, formally ending a turbulent chapter for one of New York’s most influential electronic music venues.
Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware signed off on the credit bid from AG Acquisition 1 LLC, an affiliate of Axar Capital Management, according to Bloomberg Law. The deal includes forgiveness of pre-bankruptcy secured loans and $45.8 million in bankruptcy financing, per court documents.
The ruling paves the way for a dramatic rebirth of the 80,000-square-foot East Williamsburg complex, which has remained closed since Avant Gardner filed for Chapter 11 protection in August with $155.3 million in debt. The venue cited lingering construction flaws and operational setbacks from a $30 million renovation, ultimately triggering a cascade of permit issues, failed inspections, and the ouster of embattled CEO Josh Wyatt, later replaced by nightlife veteran Gary Richards.
Under the sale order, Avant Gardner — working with the buyer — may demolish and rebuild the Brooklyn Mirage structure should Axar provide additional funding. A demolition permit filed with New York City this month estimates teardown costs at roughly $1.5 million.
Judge Walrath also approved a settlement between Avant Gardner, its unsecured creditors committee, and lenders, calling the outcome “a remarkable settlement and in the best interest of the estate.” The agreement will see lenders cover key administrative and priority claims and fund a liquidating trust to wrap the case.
The court’s approval marks a pivotal reset for a venue that once defined New York’s modern dance music landscape — and now faces a literal and financial rebuild before reclaiming its place in the nightlife ecosystem.
