It’s a legal saga that’s left Dub Club on the brink of closure, after months of litigation with its original owners.
The company, which started life as a hip hop club in 2015, was originally known as The Vinyl Factory in the United Kingdom.
Dub Club’s original owner, DJ Moksha, was convicted in February 2018 of fraud over the company’s initial business model.
That conviction was later overturned on appeal.
Dub and Mokshas two children, Tarek and Naeem, have also been accused of fraud, according to court documents.
Tarek, a 16-year-old rapper, was arrested in January 2019 and has been in custody since.
In February, the company posted $25 million in losses on its first-quarter earnings.
In September, it posted another $30 million loss.
In September, the Dub Club owners filed a motion to dissolve the company.
The motion was denied by the judge in February.
Dub has said the court proceedings have damaged its brand.
“We’re in the process of seeking an injunction that would prevent the dissolution and liquidation of Dub Club,” the company said in a statement to The Associated Press.
The owners of Dub club, in their court documents, argued the business model “would not survive the long-term nature of this litigation.”
They also said the legal battles have damaged the brand and hurt the club’s reputation.
The club’s original owners, Tariq and Nadine Smith, declined to comment.
Dub, which opened in 2016, was the first club in the U.S. to serve as a legal marijuana-only venue.
The owners were arrested in May 2018 on charges of violating federal drug laws.
They were initially charged with operating an illegal marijuana shop, but they were later acquitted.