The Austin queer community is breathing a collective sigh of relief! The highly controversial sale of the beloved Cheer Up Charlies bar to a Florida investment firm has been called off. This news comes as a welcome surprise after a year filled with uncertainty and anxiety for this iconic Austin institution.
In a dramatic turn of events, Cheer Up Charlies will no longer be under the ownership of Pride Holdings Group. Maggie Lea, the current owner, confirmed to KUT News that both parties have "amicably agreed to part ways." Lea stated definitively, "Both parties have rescinded, and Pride Holdings is no longer involved in Cheer Up Charlies. Our membership interests have been returned, and we (Tamara Hoover & Maggie Lea) remain owners of Cheer Up Charlies."
Lea kept her comments positive, simply stating, "I have nothing bad to say about them. It just didn't work out, you know?" Pride Holdings Group, on the other hand, has remained tight-lipped, failing to respond to multiple attempts for comment via calls, texts, and emails. Intriguingly, their website appears to have removed the press release announcing the acquisition, further fueling speculation about the reasons behind the deal's collapse.
Now, let's rewind a bit. The initial announcement last month that Cheer Up Charlies was being sold to an out-of-state corporate entity sent shockwaves through Austin's queer community. And this is the part most people miss: This news came just days after the bar successfully raised around $60,000 in donations to cover back rent. For many, the idea of corporate ownership felt like a betrayal of the bar's core identity as a safe and inclusive space for queer individuals in Austin. It felt like the very soul of Cheer Ups was at stake!
The original agreement stipulated that Lea and Hoover would remain as managers, while Pride Holdings Group would take responsibility for the bar's financial challenges. Pride Holdings Group had been actively acquiring struggling LGBTQ+ bars in the U.S. and even internationally, including establishments in Australia. The stated goal was to inject capital and management expertise to revitalize these businesses.
But here's where it gets controversial... What exactly led to the deal falling apart remains shrouded in mystery. Last week, Pride Holdings Group's CEO, Michael Barrett, confidently stated that the agreement was finalized but declined to disclose specific details. In an interview, Barrett outlined his plans to help Cheer Up Charlies become profitable by "cutting costs" and "rethinking operations." He also emphasized that Pride Holdings would have the authority to adjust budgets and even make changes to management if necessary.
Barrett, a former fast-food franchisee, described his acquisition of struggling queer clubs as a retirement hobby. Since July, Pride Holdings Group had announced ambitious plans, including acquiring LGBTQ+ establishments in cities like Chicago and Savannah, Georgia, as well as ventures in Australia and Bali. They even announced the purchase of a castle in Italy with the intention of transforming it into an LGBTQ+ resort. Barrett positioned the acquisition of Cheer Up Charlies – and indeed, the company's stock – as a unique investment opportunity for queer patrons, emphasizing that it was a chance for LGBTQ+ individuals to "own part of their own environment."
However, the prospect of corporate ownership sparked significant backlash within the Austin community. Scores of Austinites voiced their opposition on social media, fearing that the bar's unique character would be lost. Brigitte Bandit, a prominent drag performer who had worked almost exclusively at Cheer Up Charlies, expressed deep concerns about the implications of corporate ownership.
"I just don't think queer liberation is going to be found in capitalism," Bandit told KUT News, highlighting the sentiment shared by many. "Queer spaces don't need to be like Taco Bell.” Bandit also openly expressed her lack of confidence in Lea and Hoover's leadership and initially stated that she would not continue performing at Cheer Up Charlies if the sale went through. Now that the sale is off, she acknowledges uncertainty about her future with the bar. Bandit hopes that Cheer Up Charlies can achieve "financial stability and thoughtful leadership" as a locally owned business. Lea declined to comment directly on Bandit's remarks.
So, what does the future hold for Cheer Up Charlies? Will it thrive as an independent queer space? Can it find a path to financial stability without compromising its unique identity? This sparks a big question: Does corporate investment inherently conflict with the values of queer spaces, or can it provide necessary resources to ensure their survival? Share your thoughts and opinions in the comments below! This is a conversation we need to have to ensure the future of queer spaces like Cheer Up Charlies in Austin and beyond.
