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Jay-Z's Atlantic City Nightclub Closes

40/40 Club hasn't operated since Hurricane Sandy

Jay-Z in Atlanta, Georgia.
Prince Williams/Getty Images
March 8, 2013 1:05 PM ET

Jay-Z's nightclub outpost in Atlantic City closed last fall after ending its lease early, The Press of Atlantic City reports. The rapper co-owned the 40/40 Club, which shut its doors October 27th in preparation for Hurricane Sandy, and never re-opened. A spokesman for the club said the hurricane damaged the building that housed the upscale sports bar, though a representative for the landlord, Tanger Outlets, disputed that claim.

The 40/40 Club opened in Atlantic City in October 2005 and had hosted a plethora of stars, including BeyoncéLil Wayne and Nicki Minaj. The club's lease extended through 2015, but a dispute last year between Tanger Outlets and Jay-Z's partners, Juan Perez and Desiree Gonzalez, led both sides to agree to end the contract in 2012 instead. Tanger last year filed a civil suit against Perez and Gonzalez, claiming they owed the company more than $115,000 in rent and other charges.

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While a spokesman for the 40/40 Club said Hurricane Sandy left a hole in the roof and caused water damage, Tanger Outlets said the only damage they found in the building was left over from when the club closed. "There was no water damage to the space and no hole in the ceiling," Donna Danielson, the general manager of the retail center that included the bar, told The Press in a statement. "The club was in disarray from (operations) prior to the storm, and Tanger incurred costs of $4,970 to clean the space."

There were no reports of flooding near the club's address, which is one of the highest points in the city, according to The Press.

Jay-Z is also part owner of a 40/40 Club in Manhattan, which he renovated last year, and one at Barclays Center in Brooklyn, home of the Brooklyn Nets NBA team, of which Jay-Z is a minority owner. The rapper has also eyed a deal to bring the club to as many as 20 airports. He's been busy more recently preparing for a summer tour with Justin Timberlake.

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