The operators of the Palace Theatre have conceded defeat in their battle to save the iconic Melbourne music venue.
The former nightclub will close doors for good at the end of May this year, after the new owners refused to renew a short-term lease to allow live concerts.
Developers Jinshan Investments are pushing forward with plans to build a 15-storey boutique hotel at the Bourke Street site, with an application before Melbourne City Council.
The Palace Theatre’s general manager, Greg Young, said efforts to keep the venue open in any form had been exhausted and last-minute pleas to extend the lease had fallen on deaf ears.
“The only thing that can save this venue now is a mandatory acquisition by the state government,” he said.
“I’m gutted, I’m absolutely gutted by this.”
Mr Young said the operators had spent more than six months trying to find a new mid-sized venue in Melbourne to take the place of the 1855-person Palace, to no avail.
He said the state government had also “bent over backwards” to help. There were discussions about relocating the theatre to Docklands, but Mr Young said “regretfully they didn’t have the available space”.
“As far as I’m aware there is no one in Melbourne that has a venue of this size,” he said.
The news has raised concerns about some music acts skipping Melbourne, because of a shortage in appropriate venues. Music Victoria CEO Patrick Donovan said the Forum Theatre on Flinders Street was the only standing room venue that loosely matched the Palace Theatre in size.
The Palace Theatre operators are planning a final farewell gig at the venue in late May, likely starring an iconic Australian act.
Mr Young said: “This venue has just been about the people. We want to put something back to say goodbye. It’s going to be exceptional.”
