Owners to pull plug on Electric Lounge
Money from SXSW not enough to keep nightclub glowing
by Chris Riemenschneider, American-Statesman Staff

March 24, 1999. On their last leg financially before the South by Southwest Music Conference began, the owners of downtown nightclub the Electric Lounge have confirmed that their take from last week's festival wasn't enough to stay in business.

They said they will permanently shut the doors of the arty, eclectic venue at 302 Bowie St. on April 10.

"The numbers simply don't add up in our favor," said co-owner Mark Shuman, who was at the club Tuesday along with partners Mike Henry and Jay Hughey to make the final decision.

The annual music and arts festival, which had given the club a financial boost in past years, was its final hope.

In its 6-year history, the Electric Lounge became one of the most unusual and beloved clubs in Austin. Not only did it foster local rock bands such as Fastball, Sixteen Deluxe and Sincola, it also gave a home to some of the city's oddball characters.

Musicians including Hamell on Trial and the Asylum Street Spankers found their niche there, as did performance groups such as the Austin Poetry Slam Team and Salvage Vanguard Theatre. Visual artists hung works on the club's walls.

"It's one of those clubs that always took a chance," said Jennings Crawford of the Wannabes, one of dozens of bands that played a benefit in January to keep the Electric Lounge open. "It's something I think Austin will definitely miss when it closes."

The owners struggled financially from the beginning, mostly because of a fire that gutted the club its first year. The ultimate nail in the coffin, they said, was the rise in insurance, rent and other costs related to downtown development.

"Our revenue has stayed a constant, but our bills have gone through the roof," Shuman said.

The closing comes a few months after another popular music venue, Liberty Lunch, announced it is being bumped off its city-owned land at 405 W. Second St. The city is planning a deal to turn the property into the new offices of the Computer Sciences Corp.

"There's a layer of vital businesses being ignored so that we can have a Target store downtown," said Shuman, referring to plans for a Target at Sixth Street and Lamar Boulevard and other commercial development in the area.

Diana Zuniga, who leased the Electric Lounge its space and owns one of the neighboring art galleries, said she hopes to continue the artistic lifeblood of the area with either another club or a new gallery.

The Electric Lounge owners stressed the importance of their club's musical heritage. They will record a CD during the club's final weeks to capture some of it.

"I'm most proud of the fact that so many bands found a home with us," Henry said. "I hope there will be other places for them to turn to."