Sounds like the city is trying to shut them down.

The club caused the problem. It didn't have an employee file on the premises which apparently is required because it has a sexually-oriented business license which allows for sexual entertainmet. They violated the law and were shut down. Why didn't they have an employee file on the premises? The City acknowledged the club could remain open and operate as a bar. The club is concerned the police will shut them down again operating as a bar. The club has overreacted and gets no sympathy from me.