Music venue in Palm Springs experiences surge in popularity, later disrupted by pandemic and contentious legal dispute.
Frontline: The Battle for Alibi - A Music Empire's Downfall or Survival?
Back in the turbulent days of 2020, Elizabeth Garo and Melanie Tusquellas found themselves on the brink of losing their nightclub, Alibi, a chic music venue in downtown Palm Springs. Opened late in 2019, just before the COVID-19 pandemic hit, they had invested hundreds of thousands to renovate and launch this new venture.
Garo, an influential talent booker for decades, and Tusquellas, a hospitality veteran, were looking for a swan song for their careers. They discovered the potential of transforming the old Spanish colonial building that would become Alibi, a venue to book local and global artists in a creatively adapted old building, with a lively nightlife scene in Palm Springs missing venues for artists to perform.
The Alibi caught the eye of Marc Geiger, a well-known music executive, and John Fogelman, former board member of WME, who had founded Save Live, a company investing in independent venues to help them survive the pandemic. When Save Live offered to purchase 51% of Alibi, it seemed like a lifeline for the co-founders. However, they now claim in a 2023 lawsuit and an interview with The Times that the partnership that followed ruined them.
Their lawsuit seeks compensatory damages, alleging that Geiger and Fogelman negotiated the deal in bad faith, forcing them out of the company's operations soon after the purchase. After briefly reopening in 2022, the club permanently closed later that year. A trial is set for August.
When asked for comment, attorneys for Save Live, which rebranded as Gate 52, declined to comment. In a cross-complaint to the suit, Geiger and Fogelman say Save Live "bent over backwards to try to resolve the parties' differences" and call the co-founders' claims "salacious - and utterly false - allegations of misogyny and bad faith."
The lawsuit raises questions about Save Live's intentions and the future of troubled indie music venues like Alibi. Does the company rescue struggling venues, or does it capitalize on their vulnerability?
Gate 52 now owns 13 music venues across the country, including Electric City in Buffalo, N.Y., the Eagles Ballroom in Milwaukee, and the Criterion in Oklahoma City. They have become a significant player in secondary markets, as a well-capitalized operation that has acquired majority stakes in struggling small venues.
The fight for Alibi's control has stirred fears among locals about gentrification in their community. Minority artists and queer women in particular viewed the venue as a much-needed space, as it was one of the only venues in Palm Springs that was legitimate and provided a platform for experimental music. Local promoters fear the loss of small venues could severely impact the cultural development and economic stability of the area.
However, the post-pandemic future looks uncertain for such independent live venues. Non-profit organizations advocating for these venues, like the National Independent Venue Assn., have been effective in securing funding through legislation like the Shuttered Venue Operators Grant. Nevertheless, high inflation, reduced tourism, and a volatile economy threaten to keep fans home.
As of now, Garo and Tusquellas have returned to L.A., picking up the pieces at an unexpectedly late stage in their careers. They face the same headwinds as the rest of the live industry, with the Alibi's future still uncertain. Regardless of the trial's outcome, the co-founders are fighting to ensure that their final chapter is not defined by the loss of Alibi.
Sources:1. Coachella Valley Independent (Accessed: Mar 5, 2023)2. Los Angeles Times (Accessed: Mar 5, 2023)3. Palm Springs Post (Accessed: Mar 5, 2023)4. Desert Sun (Accessed: Mar 5, 2023)5. Goldenvoice (Accessed: Mar 5, 2023)
- In the legal Battle for Alibi, co-founders Elizabeth Garo and Melanie Tusquellas are suing music executives Marc Geiger and John Fogelman, accusing them of negotiating the purchase of 51% of Alibi in bad faith and forcing them out of the company's operations.
- The Alibi, a nightclub in downtown Palm Springs that booked local and global artists in a creatively adapted old building, was once a creative venture for Garo, a veteran talent booker, and Tusquellas, a hospitality veteran.
- The loss of Alibi, one of the only venues in Palm Springs that provided a platform for experimental music, has raised fears among locals about gentrification in their community, especially among minority artists and queer women.
- Amidst high inflation, reduced tourism, and a volatile economy, independent live venues like Alibi face uncertainty in the post-pandemic future, despite the efforts of non-profit organizations advocating for these venues and securing funding through legislation like the Shuttered Venue Operators Grant.
- Save Live, a company investing in independent venues, rebranded as Gate 52 and has acquired majority stakes in struggling small venues across the country, positioning itself as a significant player in secondary markets in the entertainment and music industry.
- Businesses in California and beyond are grappling with the impact of COVID-19, with the Alibi's closure further highlighting the challenges small businesses face during a pandemic and prompting questions about the intentions of companies like Save Live.
- As legal proceedings unfold, Garo and Tusquellas, who face the same headwinds as the rest of the live industry, continue to fight for Alibi's future and their own, ensuring that their final chapter is not defined by the loss of their music empire.
