The front of Medusa Lounge in the Northeast Plaza in Brookhaven, Georgia, on Monday, April 23, 2018. (REANN HUBER/REANN.HUBER@AJC.COM)
Photo: Reann Huber
Photo: Reann Huber

DeKalb News: Brookhaven nightclubs appeal loss of liquor license

Three nightclubs in Brookhaven who face the loss of their liquor licenses will be allowed to appeal.

The northern DeKalb County city told XS Restaurant and Lounge, Medusa Restaurant and Lounge and Josephine Lounge that their liquor licenses would be suspended until they paid tens of thousands of dollars in unpaid taxes. An appeal hearing has been set for May 7.

All three nightclubs are located in Northeast Plaza off Buford Highway. The Rusty Nail Pub about a mile away also faces a suspension of its alcohol permit. It is unclear if that bar’s case will also be on the agenda May 7.

If these clubs’ liquor licenses are revoked, they won’t be allowed to serve alcohol to customers until overdue taxes and a reinstatement fee are paid. The clubs can remain open and serve food and non-alcoholic beverages, but their business models rely heavily on adult concoctions.

The city said an audit showed these clubs under-reported the amount of alcohol they sold and therefore did not pay enough taxes.

Related | Brookhaven nightclubs may lose liquor licenses over tax dispute

Related | Brookhaven: Pink Pony strip club, other businesses owe liquor taxes

Brookhaven also is trying to collect $80,200 in unpaid taxes from the Pink Pony strip club but must go through the courts since the club filed for bankruptcy.

Hudson Grille appealed the amount in taxes the city says its owes, but a hearing officer upheld the amount. The restaurant’s owners wrote a $10,132.92 check last week to settle the case.

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