$110 Million Brooklyn Mirage Sale Sparks 2026 Comeback Hopes

BROOKLYN, NY — Brooklyn Mirage’s future could get a lift as Axar Capital wins court approval to buy Avant Gardner in a $110 million deal.

The deal gives Axar control over most of Avant Gardner’s assets, including the Brooklyn Mirage stage, after the nightlife empire filed for bankruptcy two months ago and canceled its entire 2025 summer season due to ongoing permitting and safety issues.

Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware approved the credit bid from AG Acquisition 1 LLC, an Axar Capital affiliate, in a deal that includes forgiving pre-bankruptcy secured loans and $45.8 million in bankruptcy financing, giving the firm control over most of Avant Gardner’s assets, including the Brooklyn Mirage stage, court records show.

During a bankruptcy hearing earlier this month, an Axar lawyer said the venue could undergo construction or possibly demolition to prepare for a 2026 season, offering the first sign that the Mirage, closed since 2024, might reopen, Gothamist first reported.

This follows news that parent company Avant Gardner filed a demolition permit earlier in the month for 32,000 square feet of a three-story temporary structure at a cost of $1.5 million. The venue, part of the larger Avant Gardner complex, has been shuttered for several months amid renovations to upgrade the sound system and expand the dance floor, Patch previously reported.

The ongoing delays at Brooklyn Mirage may have contributed to Avant Gardner’s financial troubles. First reported by Bloomberg, AGDP Holding—the parent company of Avant Gardner LLC—filed for Chapter 11 bankruptcy in Delaware, citing around $155.3 million in funded debt.

Court filings show that while events continue at The Great Hall and Kings Hall, and some have been moved off-site, the Mirage’s inability to reopen for the 2025 season created a liquidity crunch that ultimately led the company to seek bankruptcy protection.

Avant Gardner has faced its share of setbacks before, including the 2023 Electric Zoo festival, which was plagued by logistical and financial issues, sparked a class-action lawsuit, and further damaged the company’s reputation.

While reopening remains uncertain, Axar Capital’s takeover has raised the possibility of a Brooklyn Mirage return for the 2026 season, though nothing has been officially announced.