The Pearl, which took over the historic space of The Mercury Cafe, is in a deep financial hole and is hoping to raise enough money to stave off the closure of yet another queer space in Denver.
In a statement posted to Instagram, The Pearl’s owners said Saturday morning that the lesbian bar would close at the end of April.
“Unfortunately, we are just not in a position to continue with our doors open while also ensuring our staff and beloved performers, entertainers, djs, and event producers are properly compensated,” they wrote.
But hundreds of Instagram comments later, co-owner Dom Garcia announced The Pearl would instead try to fight off the financial crisis through a GoFundMe.
“We can't lose another space,” Garcia said. “We're one of maybe 30 [lesbian bars] left in the country, the only one in the state of Colorado and probably the neighboring states, and the community wants us to keep going.”
But The Pearl’s runway is short. While the GoFundMe’s goal is set at $80,000, Garcia admitted they would need a lot more to stay open. The business is behind on rent, property tax payments, salaries and recently finished paying for pricey repairs to an aging building.
By Saturday afternoon, the fundraiser had raised $27,000.
The space has been tough to manage.
The Pearl opened in March 2025, taking over the space from The Mercury Cafe, the legendary bar, restaurant and venue. Before the Merc closed, its financial trouble led to controversial cost-cutting measures.
Danny Newman, who purchased the building and assumed ownership of the Merc, then closed the longstanding venue despite ongoing negotiations with a worker-owned cooperative. The Pearl’s owners approached with a whirlwind offer that came together within three weeks.
Now, even though owners say The Pearl is crowded and lively most nights, it is experiencing many of the same challenges Newman faced in the final months of The Mercury Cafe.
“Creative community, special spaces like this are extremely hard to maintain financially,” Newman told Denverite. "It's a big building in a little bit of a difficult neighborhood.”
Garcia said they’re looking at options like raising prices, bringing in a third party to run the kitchen and more.
The hole will be difficult to get out of. Garcia said their monthly rent — $20,000 — is steep and has caused them to fall behind. And that’s on top of property taxes and utilities.
Garcia said they have already had to cut staff hours, but are hoping to avoid layoffs.
There has been some relief — Garcia praised Newman and building co-owner Austin Gayer for their flexibility and understanding.
“They're in a financial bind to try to keep it open too,” Garcia said. “They've done everything they can. They're giving us ‘til June to get ahead on rent.”
The road to Pride:
Garcia said if they can dig out of the multi-month rent deficit and even get ahead by a month, they anticipate smooth sailing ahead. They think that if they can make it to Pride weekend in late June, they can survive.
They’re hopeful after seeing the wide show of support on social media. But they acknowledged nothing is guaranteed.
“Even if this keeps us going open for a couple more months, I think it was very much worth it,” Garcia said.
Newman hasn’t given up hope on The Pearl either. He said they’ve been looking for a group or individual to come in and help make the building less expensive to manage.
“Maybe there's a rich gay person out there or some sort of silent investor, angel investor, someone that's willing to help keep the space,” Garcia said.
If The Pearl closes, it would mark the end of yet another queer space in Denver. This month, Santa Fe Drive queer bookstore Petals & Pages will close, with owners citing high rent and low revenue. The last bona fide lesbian bar in Denver, Blush & Blu, closed on Colfax in 2024.
