Windy City Media Group Frontpage News Home
CELEBRATING 28+ YEARS OF Lesbian Gay Bisexual and Transgender NEWS

Search Gay News Articles
Advanced Search
Gay News Sponsor Windy City Times 2014-11-19
Download Issue
  News Index   About WCMG    Publications    Bars & Clubs     Calendar   Videos   Advertisers    OUT! Guide    Classifieds     AIDS @ 32       Marriage
 Local | National | World | Politics | Obits | Profiles | Views | Entertainment | Theater | Dance | Music | Film | Art | Books | TV/Gossip
 Travel | History | Marriage | Youth | Trans | Lesbian | Celebrations | Food | Nightlife | Sports | Health | Real Estate | Autos | Pets | Crime

Sponsor
Veteran killed; Perry disrupted; Collins honored Veteran killed; Perry disrupted; Collins honored
An Army veteran beaten by a man he met at a bar ...

Browse Gay News Index   Browse Gay News Archives
  Windy City Times

Circuit co-owner announces closure, fallout goes on
by Kate Sosin, Windy City Times
2012-11-12

facebook twitter pin it del.icio.us stumble upon digg google +1 reddit email


(Reporter's note: Circuit owner Mike Macharello initially alleged in a Facebook post that Sterling Properties, his landlord, raised the rent at Circuit Nightclub. In an interview with Windy City Times immediately following those statements, Macharello conceded that his comments had been inaccurate. On Feb. 7, 2013, Macharello wrote to Windy City Times and further retracted his statements. His retraction has been published in full below.)

Circuit nightclub owner Mike Macharello has announced that the business will not reopen, after an apparent split between management and financial troubles.

Macharello announced the closure via BOI Magazine, which he publishes, but the reasons behind the split remain unclear.

"The business has been difficult on the both of us, and we got through the worst of times together," said Macharello in the statement. "I always wish Patrick [Harms, co-owner] the best."

The statement notes that Harms is open to the possibility of launching a new club at Circuit's former home.

Macharello's announcement comes after the club ceased operation unexpectedly earlier this month and its website was taken over by creditors. BOI Magazine's website was also seized.

Macharello had stated that the closure was temporary and that Circuit would reopen after he renegotiated Circuit's increasingly expensive lease. But co-owner Patrick Harms refuted that version of events, stating that the rent had not been raised and that Macharello pulled his business licenses from the premise.

Macharello and Harms had been managing operations at Circuit together. Harms held the lease to the property, located at 3641 N. Halsted St., while Macharello owned the business licenses.

Macharello alleges that he saw money problems, which Harms had been charged with handling, and became increasingly concerned about the business (Harms could not be reached for follow-up comment). To protect the business, Macharello said, he removed the business licenses every night.

On Halloween, he removed the licenses.

The next day, he said, "we got locked out."

Macharello claims that Sterling Properties, which manages the building, locked them out over back rent that Harms had failed to pay.

Frank Friedman of Sterling Properties called Macharello's statements "erroneous."

Macharello had initially posted on Circuit's Facebook page that Sterling had been raising the rent by thousands, a statement that both Harms and Friedman said was false. Macharello later told Windy City Times that he had simply wanted a rental reduction and had been unable to negotiate it. He conceded that the rental cost was his responsibility as owner but that he had hoped for help in a tough economy.

Friedman said that Circuit had closed not because of Sterling Properties, but because of Macharello.

"Mike removed the business licenses," he said. "Circuit could not operate without a business license."

Cut off from his source of income, Macharello said, one of his investors closed in and seized the websites. That investor was Jeffrey Binninger, President of Investure Corp. Binninger took control of Macharello's websites, he confirmed.

Macharello alleges that he believed the BOI Magazine website had wrongly been seized, as the magazine and the club are two different companies.

Not so, said Binninger.

"BOI magazine is just as much included as Circuit," Binninger said. "He signed a security agreement that pledged all of the assets that he had."

Binninger declined to say how much money Macharello owes but said that the number is in the six figures.

Binninger said that Harms had been trying to pay down the club's debts until Macharello, unhappy with the club's direction, went into the club Oct. 31 and took his licenses.

Both Macharello and Binninger said that Macharello had been unhappy with the direction of Circuit, which had been increasingly branding itself as a Latin club.

Macharello loved hosting Latin events, but he envisioned a club that would embrace the full diversity of Chicago's LGBT community in addition. He wanted to host other themed night, too, targeted at different segments of the community.

The disagreement over the club's direction appears to have spurred some of the tension between Harms and Macharello, although Macharello said he still considers Harms a good friend.

After Macharello took the licenses, however, the split became clear.

"Patrick has the venue but doesn't have the licenses," said Binninger.

Consequently, Investure moved in on Macharello.

Both BOI magazine and Circuit's websites were hosted on Contax Communications Corporation servers, another company owned by Binninger. Binninger shut down the websites, and visitors have been greeted with blank screens and a message noting the seizures since.

Macharello skirted the seizures by launching new websites for both Circuit and BOI Magazine, and he has vowed to continue publishing.

Macharello also held Circuit parties in in other locations. Noche Latina was held at 1675 N. Elston Sunday night, and Macharello hosted ExtravaGanza at Evergreen Club Saturday.

But Binninger said that legal proceedings against Macharello are in the works and that those impact BOI in addition to Macharello's other assets.

"He's under the illusion that everything is going to be fine," said Binninger. "He's so far over his head that the only way he is going to get out is to win the lotto."

Statement from Mike Macharello:

For Immediate Release

From Mike Macharello

re: Retraction

I would like to retract and clarify a statement I made that the landlord of Circuit "raised the rent by thousands of dollars." It was erroneous on my part to either state of infer that Frank Friedman and Sterling properties raised the rent any more than was commensurable with current area market and times. It was further erroneous to either state or infer that this was the cause of the closing but rather that the closing was caused by many factors, many of which included a depressed economy. While most consumers these days are looking for bargains and cheaper prices, the fact is that supplies, inventory, utilities, taxes, licenses, payroll and other costs associated with doing business, all continue to rise. For most businesses it's a challenge to bridge the gap between rising costs and offering competitive prices to their customers. Circuit was no exception. However, throughout my 15 year relationship with Sterling, Frank has always done his utmost to work with me and my colleagues in order to perpetuate Circuit nightclub. I would like to take this opportunity to apologize If I have said or inferred anything which was looked on as detrimental to Frank Friedman and/or Sterling Properties.

Sincerely,

Mike Macharello


facebook twitter pin it del.icio.us stumble upon digg google +1 reddit email




Windy City Media Group does not approve or necessarily
agree with the views posted below.
Please do not post letters to the editor here.
Please also be civil in your dialogue.
If you need to be mean, just know that the longer you
stay on this page, the more you help us.

Darren Walker: The first out gay president of the Ford Foundation 2014-11-19
HRC releases Corporate Equality Index 2014-11-19
Shareholders to corporations: Improve policies for foreign-based LGBTs 2014-11-15
Local groups, individuals react to election results 2014-11-12
Chicago team shares innovations with nat'l LGBT realtor gathering 2014-11-09
Philip P. Burgess elected to pharmacy association board 2014-11-09
ELECTIONS 2014 Durbin tops Oberweis, GOP takes Congress, local LGBTs win 2014-11-05
Apple CEO Tim Cook officially comes out 2014-10-30
Luxury consignment spot launches in Gold Coast 2014-10-29
Incoming Northalsted Business Alliance ED looks ahead 2014-10-26
More than 100 attend Chicago LGBTQ Job Fair 2014-10-23
LOCAL: AFC partners to reduce STDs; Panel on state fiscal crisis 2014-10-22
StartOut hosts panel discussion with founders/CEOs 2014-10-14
Guerrilla Queer Bar co-founders criticize new incarnation 2014-10-08
News notes: Local entertainment, events 2014-10-08
Census Bureau names new Nat'l Advisory Committee members 2014-10-06
Report: Laws create financial penalties for LGBT Americans 2014-10-01
Local flag-football teams look to shine in Gay Bowl XIV 2014-10-01
Open To Thinking: It's Your Money: Illinois 2014-10-01
Illinois Fiscal Crisis panel Oct. 23 at Loyola 2014-09-16
Writing the Disability Experience: Local to authors read 2014-09-11
Local news: Gay Indian prince, HBHC raises wages 2014-09-10
Inspiration for 'Scandal' at Chicago women's confab 2014-09-09
New study sees financial struggles among LGBT Americans 2014-08-25
New index examines companies' LGBT policies 2014-08-13
Former bookstore owners reflect on local legacy 2014-08-13
Kickball league launches locally to support charity 2014-08-08
'Live The Wage Challenge' issued to Congress: Try living it 2014-07-22
President's remarks at signing executive order banning bias 2014-07-21
Charlie Rice-Minoso: Building his own legacy locally 2014-07-19
Pride at Work's head discusses Brunei, women's groups 2014-07-15
LETTER More is needed 2014-07-02
Patrik-Ian Polk's Blackbird screening at local film festival 2014-07-02
BENT NIGHTS Etheridge, Ferrick headline local concerts 2014-07-01
Obama announces ban on trans bias for federal employees 2014-06-30
Locals among newest Point Scholars 2014-06-25
Local theaters screen The Nance starring Nathan Lane 2014-06-23
Pride at Work names Jerame Davis interim executive director 2014-06-12
Annual local tennis tourney has changes 2014-06-10
Area LGBT businesspeople get 'Out of the Office' 2014-06-08





Copyright © 2014 Windy City Media Group. All rights reserved.
Reprint by permission only. PDFs for back issues are downloadable from
our online archives. Single copies of back issues in print form are
available for $4 per issue, older than one month for $6 if available,
by check to the mailing address listed below.

Return postage must accompany all manuscripts, drawings, and
photographs submitted if they are to be returned, and no
responsibility may be assumed for unsolicited materials.
All rights to letters, art and photos sent to Nightspots
(Chicago GLBT Nightlife News) and Windy City Times (a Chicago
Gay and Lesbian News and Feature Publication) will be treated
as unconditionally assigned for publication purposes and as such,
subject to editing and comment. The opinions expressed by the
columnists, cartoonists, letter writers, and commentators are
their own and do not necessarily reflect the position of Nightspots
(Chicago GLBT Nightlife News) and Windy City Times (a Chicago Gay,
Lesbian, Bisexual and Transegender News and Feature Publication).

The appearance of a name, image or photo of a person or group in
Nightspots (Chicago GLBT Nightlife News) and Windy City Times
(a Chicago Gay, Lesbian, Bisexual and Transgender News and Feature
Publication) does not indicate the sexual orientation of such
individuals or groups. While we encourage readers to support the
advertisers who make this newspaper possible, Nightspots (Chicago
GLBT Nightlife News) and Windy City Times (a Chicago Gay, Lesbian
News and Feature Publication) cannot accept responsibility for
any advertising claims or promotions.

 

 

 

Sponsor
Sponsor
Sponsor


 

Federal judge: Montana's anti-equal marriage rule unconstitutional
 
TRAVEL Eureka Springs, Ark.: Living on mountain time
 
DISH: SAVOR Old Crow Smokehouse; Kokopelli
 
National Women's Hall of Fame hosts forum in Chicago
 
Leaving a legacy: Danny Kopelson reflects on Hall of Fame life
 
Windy City Times Current DownloadNightspots Current DownloadQueercast Current Download
Windy City Media Group BlogsJoin Our Email List!Donate Now
Sponsor


Sponsor

  News Index   About WCMG    Publications    Bars & Clubs     Calendar   Videos   Advertisers    OUT! Guide    Classifieds     AIDS @ 32       Marriage
 Local | National | World | Politics | Obits | Profiles | Views | Entertainment | Theater | Dance | Music | Film | Art | Books | TV/Gossip
 Travel | History | Marriage | Youth | Trans | Lesbian | Celebrations | Food | Nightlife | Sports | Health | Real Estate | Autos | Pets | Crime



About WCMG      Contact Us      Online Front  Page      Windy City  Times      Nightspots      OUT! Guide     
Identity      BLACKlines      En La Vida      Archives      Subscriptions      Distribution      Windy City Queercast     
Queercast Archives      Advertising  Rates      Deadlines      Advanced Search     
Press  Releases      Event Photos      Join WCMG  Email List      Email Blast     
Upcoming Events      Todays Events      Ongoing Events      Post an Event      Bar Guide      Community Groups      In Memoriam      Outguide Categories      Outguide Advertisers      Search Outguide      Travel      Dining Out      Blogs      Spotlight  Video      News Videos      Nightspots Videos      Entertainment Videos      Queercast Videos      Comedy Videos     
Classifieds      Real Estate      Place a  Classified     

Windy City Media Group produces Windy City Queercast, & publishes Windy City Times,
The Weekly Voice of the Gay, Lesbian, Bisexual and Trans Community,
Nightspots, Out! Resource Guide, and Identity.
5315 N. Clark St. #192, Chicago, IL 60640-2113 • PH (773) 871-7610 • FAX (773) 871-7609.