BOYSTOWN — Even though Mike Macharello, the co-owner of Circuit Nightclub, posted an open letter on the club's website Friday citing skyrocketing rent and landlord disputes as the reason for temporarily shuttering the club's doors, it appears the closing had more to do with an internal disagreement between co-owners.
According to ChicagoPride.com, which first reported the issue, the manager of the building is Franklin Friedman, of Sterling Properties. The website reported that Friedman said Macharello's claims of increased rent were false and that Circuit's other owner, Patrick Harms, was actually the leaseholder. The website reported that in 2010, Harms negotiated a lower rent with Friedman.
Harms told ChicagoPride.com that he had a "serious disagreement over administrative and operational concerns" with Macharello and was unable to find "common ground."
"Mike Macharello triggered the closing of Circuit Nightclub, because he took the liquor license off the wall," Friedman told DNAinfo Chicago. "Circuit could not stay open without the liquor license."
Friedman did not give any details as to why Macharello took down the liquor license, and said the open letter Macharello posted on Friday sent "false and salacious messages" about what happened.
On Sunday, the open letter from Macharello on CircuitClub.com was replaced with a note, which read: "As a matter of public notice: As of November 1, 2012 all assets of Michael Macharello d/b/a Circuit Nightclub have been seized by first position debt holders."
On Nov. 2, Macharello posted on the website a letter that read in part: "My landlord continues to raise rent on us by thousands of dollars and all the money you spend at Circuit, the majority goes to him! I do not want that for myself, for you or the future of Circuit."
DNAinfo.com Chicago has been unable to reach Macharello or Harms for comment. It is unclear whether Circuit Nightclub will re-open.
