Why two downtown Phoenix nightclubs closed suddenly

Bar Smith and Monarch Theatre, two longtime downtown Phoenix nightclubs, have closed.

Owner Sean Badger, who performs as DJ Senbad, says the neighboring Washington Street venues were locked out Tuesday by the property owners.Their final night of operation was Feb. 15.

Badger says the shutdown stems from a nearly two-year dispute with Liebhaber Family Partnership, which owns the buildings housing both clubs, over efforts to secure a new long-term lease.

“It’s all very convoluted and a lot of weird shit has gone on,” Badger says. “But in the end, both the clubs are closed.”

Since 2024, Bar Smith and Monarch Theatre had operated under a month-to-month agreement. Badger says he was trying to secure a long-term lease.

Two weeks ago, Badger says the club’s landlords sent a demand letter seeking what he describes as “an outlandish amount of money” for unpaid rent and property taxes allegedly dating back to 2005.

The claim, Badger says, makes no sense.

Bar Smith didn’t open until 2007. Badger and his former business partners Pete Salaz and Edson Madrigal didn’t sign his first lease for the property until 2010. And they launched Monarch Theatre in 2012.

“So their allegations that I’ve been behind on property taxes and rents since 2005 is so outlandish and ridiculous,” he says. “There’s just no part of me that ever had met or even know who they were in 2005.”

Badger hired an attorney to negotiate a resolution. Talks collapsed Tuesday morning.

Hours later, Badger says, the locks were changed. A real estate listing for both Washington Street properties posted online the same day with a $3.3 million asking price.

“They used a bunch of erroneous information to lock us out of the building,” Badger says. “The short answer is that we’ve been in a landlord dispute basically for almost two years and we finally came to a place where we were forced to leave.”

Phoenix New Times reached out to Laura Liebhaber, a partner in the Liebhaber Family Partnership with her brothers Myron and Richard, according to Maricopa County Records. She declined to comment on the closing of the clubs.

With Bar Smith and Monarch Theatre gone, downtown Phoenix loses two of its biggest nightlife anchors. The closures leave a void for clubgoers who filled the venues for weekly DJ nights and late-night dance parties.

For years, the neighboring multi-story clubs functioned as epicenters of Washington Street nightlife.

Bar Smith’s rooftop hosted open-air DJ sessions, while Monarch Theatre drew touring acts, hip-hop fans and Latin dance crowds into its cavernous rooms. On any given weekend, the block pulsed with beats and bass until last call, a regular stop for the party crowd.

Bar Smith and Monarch Theatre history

Bar Smith opened in 2007 under restaurateur Bill Smith. Two years later, Sean Badger and partners Pete Salaz and Edson Madrigal took over management of the two-story club. They purchased the business and its liquor license in 2010.

Over the next decade, Bar Smith became a downtown nightlife staple.

EDM fans filled the dance floor. Partygoers crowded the rooftop. Solstice Saturdays, the long-running house music night led by Badger and Salaz, became a fixture.

Influential DJs Sean Watson and former Valley resident William Reed launched popular weekly rooftop parties. Two well-known local DJs, Mija and Blossom, also cut their teeth at Bar Smith before moving on to national success.

In 2012, Badger and his partners converted the neighboring PHX Nightclub into Monarch Theatre. The three-story venue quickly found its own rhythm.

“Bar Smith (became) a place that artists and DJs want to come perform,” Badger says. “Monarch made its own waves. What came out of the prime time of Bar Smith and Monarch was truly legendary musically.”

Murals by local artists covered the exterior. Inside, a 7,000-square-foot main room and upstairs lounge hosted concerts, dance nights and touring DJs.

Respect Tha Underground staged multi-year residencies and multiple editions of the Arizona Hip-Hop Festival at Monarch. Relentless Beats brought in high-profile EDM artists including Paul Oakenfold, Doctor P and ATLiens.

Infamous local DJ collective Sadisco* even staged its “Fight Club”-themed dance party in Monarch’s basement in 2014, complete with bare-knuckle brawls between attendees.

Years later, Badger faced a fight of his own to keep his clubs alive.

Pandemic setbacks and mounting challenges

Like countless nightlife venues, Bar Smith and Monarch Theatre went dark during the COVID-19 pandemic.

Then the hits kept coming.

Burglars smashed Bar Smith’s windows during the shutdown in 2020 and stole much of its liquor inventory. Weeks later, the clubs were hit with massive utility bills despite being closed.

Salaz and Madrigal exited the business during the pandemic. Badger pressed on.

“They didn’t want to pursue having to get loans and possibly go into debt to stay open and come out on the other side of COVID,” Badger says. “So we (bought) them out, I got a PPP loan and managed to stay afloat until it was time to reopen and start all over again.”

Even after reopening, Badger says challenges remained.

Rising costs and smaller post-pandemic crowds strained operations. Badger also battled the city of Phoenix over zoning and use permits. The matter wound up in Maricopa County Superior Court, where it was dismissed last year in favor of Badger and the property owners, who were co-plaintiffs in the case.

Over the last year, he says, Bar Smith and Monarch both had newfound momentum.

“We have managed to stick it out and things were actually really taking a turn for the better,” Badger says. “I finally had put in place a management team, a staff and a vision for the future that was working.”

Badger, who still owns the liquor license for Bar Smith and Monarch, isn’t certain what he’ll do next.

“I’ve got to figure out how to make money again. Do I search out DJ gigs? Do I try promoting again?” Badger says. “I’m definitely going to take my liquor license and move it somewhere else, but that’s going to take time to find the right location because this was truthfully unexpected.”

For now, he’s trying to look ahead.

“I’m really hurt by the whole situation, but at the same time, I’m really optimistic because it’s a chance to do something new,” Badger says. “I’m excited to keep going, so I’m not bugging.”