Updated 8:01 p.m.
The Mercury Cafe’s nearly 50-year run is coming to an end.
By the end of the month, the longstanding Five Points restaurant, bar and event space will turn into The Pearl — the continuation of Capitol Hill queer speakeasy Pearl Divers.
Owners of The Pearl and the Mercury Cafe announced the news Tuesday. The Mercury Cafe has been up for sale since August, with a number of interested parties inquiring about the building.
But it wasn’t until last month that the Pearl Divers team came into the equation.
“Just three weeks ago, we got introduced to Dom and Ashley and their team at Pearl Divers, and it was just an instant amazing coming together of just great folks,” Mercury Cafe co-owner Danny Newman said.
The new ownership group has been operating a queer bar in Capitol Hill
Dom Garcia and Ashlee Cassity have been operating Pearl Divers, a self-described “sapphic focused, speak-tiki dive bar”, since December.
The duo had never opened a bar before, but felt compelled after Blush & Blu — the last remaining lesbian bar in town — closed earlier that year.
Pearl Divers hasn’t had a space of its own, subleasing a lounge next to dance club Your Mom's House. Since opening, they've been looking for an opportunity to move into a permanent space.
Its move to the Mercury Cafe’s building in Five Points will ensure it has ample space to realize its own vision. As part of their new arrangement with Newman, The Pearl will lease the former site of the Mercury Cafe, with an option to purchase the property after two years.
“We want to give fresh life to this space, honoring its rich history as a treasured gathering spot for Denver’s LGBTQIA+ community and beyond,” The Pearl said in a statement.
The Pearl outlined several goals for its future, including “fostering a positive work environment that values all employees” and keeping many of the events traditionally held at the Merc. As part of the transition, all current employees at the Merc will be given a chance to stay on and all booked shows will stay on the schedule.
The Pearl co-owner Dom Garcia said they plan to keep the political spirit of The Mercury Cafe alive.
"I'm a Hispanic trans masc person. I did some time in the military, I absolutely hate the military now. I'm very ACAB," Garcia said. "We're very out and loud."
Newman’s tenure as the Merc’s steward has been rocky
Local tech entrepreneur and Denver preservationist Danny Newman bought The Mercury Cafe in 2021 from its founder Marilyn Megenity.
Newman set out to preserve the Mercury’s unique spirit by running it the exact same way.
That proved harder than anticipated. The Mercury Cafe was almost always in financial straits, and cost-cutting measures negatively affected employee morale. Newman’s belt-tightening measures likely spurred on an ongoing labor dispute with its union, which won a union election by relatively thin margins in August 2023.
“When I came in, my mission and promise was to keep everything exactly the same,” Newman said Tuesday. “The reality is for it to continue to exist, it does need to change.”
At the time of sale, several unfair labor practice charges are still open with the National Labor Relations Board. The union alleges Mercury Cafe broke federal labor laws by refusing to bargain and illegally terminating the employment union members.
Anna McGee, a union member, said she was caught off guard, adding that the union was not informed of the sale before the announcement went public.
“I hope we can open a conversation [with the new owners],” McGee said.
Denverite has reached out for comment to leadership at Communication Workers of America 7777.
In December, Newman said he was exploring options to transfer the Mercury Cafe’s ownership to a worker-owned cooperative. But the timing just didn’t line up, he said.
“The co-op group, we were looking closer to the end of the year before we'd be able to make that work,” Newman said. “I think that this [deal] is perfect. It's an existing team, existing community, able to just dive right in.”
Even though The Pearl’s opening will mark the end of The Mercury Cafe as we know it, Newman said he’s hopeful the spirit of the longstanding Denver icon will continue.
“I think that's one of those ‘time will tell’ type things,” he said.
Editor's note: This story was updated to add additional quotes from The Pearl's owners and clarify Pearl Diver's location.
