Knitting Factory’s CUP Crisis

A staple on the Hollywood club scene is facing the revocation of its conditional use permit and possible closure in what owners are attributing to the gentrification of the surrounding neighborhood.

The Knitting Factory has been cited by the Los Angeles Department of Building and Safety for violating its CUP, which permitted the venue to sell and dispense "a full line of alcoholic beverages for on-site consumption and dancing, both as accessory uses to operation of a bonafide restaurant."

The club has been called a "public nuisance" for "contributing to the deterioration of the adjacent community," according to an LADBS report.

However, Knitting Factory GM Morgan Margolis said in a statement the venue was originally brought into the once crime-riddled neighborhood to revive it.

"Knitting Factory was lured to this location and has served as the anchor tenant to revamp this neighborhood," the statement said. "Suddenly, as the neighborhood has pushed the drug dealers out, the rent’s up, [the area has] condos and [we’ve] turned our complex from an entertainment center to a retail center, we are no longer wanted."

The complex that houses the club underwent renovations beginning in 2004 that produced new neighbors including LA Fitness, DSW and Longs Drugs – and reports of tensions over the club’s queuing.

"They are also trying to say we do a steady stream of erotica here, which is absurd, as we’ve only had three adult entertainment parties over eight years and 10,000 shows," Margolis wrote.

According to the LADBS notice of hearing, there are "written allegations and a 31 signature petition stating the non compliance with the conditions," as well as "officer declarations and photographs of illegal activity within the establishment" from the LAPD.

A hearing is set for July 17th.