AUSTIN (KXAN) — The last couple of months have been a whirlwind of updates from local LGBTQ+ bar and nightclub Cheer Up Charlie’s.
In August, the Red River Street bar launched a crowdfunding campaign to raise $60,000 in a little over a week to pay back rent owed to the business’s landlord, or risk shutting down. Within 48 hours, Cheer Ups raised enough money on crowdfunding platforms GoFundMe and Ko-Fi to meet that goal.
A little over a month later, in mid-October, Cheer Up Charlie’s announced that Pride Holdings Group, a Florida-based hospitality and entertainment group, had bought it.
Pride Holdings posted a now-deleted press release about the acquisition, saying in it that it would maintain the bar’s branding, and that bar co-owners Tamara Hoover and Maggie Lea would “remain in leadership positions.”
Now, the bar and the holdings group have called off the deal, according to reports.
KUT News and the Austin Chronicle published stories on Tuesday about the latest development for the queer bar. Both outlets reported that Cheer Ups’ owners provided statements to them directly.
The Austin Chronicle said in its reporting that Lea and Hoover “reached out” with a statement sharing that “‘both parties have amicably agreed to part ways,'” and that “‘Pride Holdings is no longer involved in Cheer Up Charlies.'” KUT reported a similar statement, credited solely to Lea.
Lea told KXAN via text message on Wednesday afternoon that she was “not at liberty to comment” on the deal being called off, and she did answer follow-up questions.
Pride Holdings has not responded to KXAN’s request for a comment on Wednesday.
Cheer Ups’ past fundraisers, community backlash and bar owners’ response
The announcement of Pride Holdings’ involvement generated lots of conversation on social media at the time. Some people praised the move, noting that it could be a lifeline for the strapped-for-cash bar, and others criticized the fact that an out-of-state holdings company would be stepping in to take over a locally owned LGBTQ+ space.
Some of the criticism was also rooted in concerns over financial decisions and transparency from Cheer Ups’ owners, especially because the bar has asked for donations in the past.
At the end of 2023, Cheer Ups announced plans to evolve its business model, and it launched an account on the fundraising platform Patreon in response to economic pressures it faced back then. Cheer Ups said in an Instagram post on Dec. 30, 2023, that it was working to eventually start serving its own coffee during the day and expand its brunch programming and hours. However, those initiatives did not happen.
Cheer Ups also raised nearly $20,000 on GoFundMe back in 2020 for an “Emergency Staff Fund,” according to the GoFundMe page. The page stated that the money would “go directly to keeping our employees afloat during this time.”
Oilcan Harry’s, another LGBTQ+ bar in downtown Austin, has publicly shared its owners’ opinions on Cheer Ups recent business decisions.
After the Pride Holdings acquisition was announced, Oilcans made a post on Instagram, saying in part, “Cheer Ups was supposed to represent alt queer Austin!!,” and, “This news angers us, especially after their Pride stunt BS…” in reference to Cheer Up Charlie’s fundraising effort back in August.
The Chronicle reported that Oilcans’ owner also shared other concerns with the outlet about what impact a large holdings group coming into Austin’s local LGBTQ+ scene could have on the community.
Cheer Ups, facing backlash and countless questions from the community, made a 16-slide Instagram post on Oct. 23 about what the Pride Holdings acquisition would mean for the business moving forward. The post is now deleted, but KXAN has screenshots of the post.
The post mentioned transparency and accountability from Lea and Hoover moving forward. KXAN sent a few quotes from the post to Lea on Wednesday and asked if they’re still accurate to her and Hoover’s business approach. Below is part of the message KXAN sent to Lea:
Are the following quotes from the post still true, and if so, how have you and Tamara/Cheer Ups followed through on them?
“This next chapter is about doing better-with more support, transparency, and accountability than ever before.”
“Transparency will guide every decision we make moving forward.”
“Communication with our staff, artists, and patrons will be open and consistent.”
Lea said in response, “Cannot answer any of those unfortunately!”
KXAN asked why she was unable to provide answers, and we have not yet received a response.
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