Level V Sinks
If Hanson can’t make it, who can? At 10 a.m. yesterday, management was informed of the closing of underground Meatpacking club Level V, part of Steve Hanson’s B.R. Guest empire. It was one of four places closed. The others — Fiamma, Ruby Foo’s Uptown, and Blue Water Grill Uptown — were restaurants dependent on broker bucks, which are becoming quite endangered lately. Level V, on the other hand, was the underground lounge/club beneath Vento, the corner restaurant in that v-shaped building at 9th Avenue and 14th Street.
The Hanson team tried their best to have a separate identity for each place, but they did share bathrooms, and neither place ever gathered the kudos they sought. Even with the best location in town, Level V could never muster an A-list crowd, and instead settled to grab what came by. Its promotional theory was basically that of a spider: build a web in a busy spot and hope for your clients to fly into it. I asked an axed Level V employee why it didn’t make it and was told that the restaurant mentality never could grasp the necessities of club promotion. They could not grasp paying promoters and decided to keep every dollar for themselves. He said he was always asking them if they would, “rather have 50% of $50,000 or 100% of $15,000” but they never grasped it. The concept of a promoter-driven club diluting the Vento brand was the reason cited to opt out. Not dealing with lowlife promoters is one thing, but shutting the doors might be a bit worse.
Upon returning from his New Years’ Eve at the Fontainebleau in Miami, another source reveals that Steve was faced with a “huge cashflow problem.” The Dos Caminos in Las Vegas’ Palazzo Hotel, with a $20-million-plus-plus-plus build-out and launch, is doing — I was told — “A mere 150 covers a night. The entire casino and resort hotel has performed poorly.” My source said that “the mounting problems with this spot are so bad that only ego and thoughts of a terminal blow to the brand are keeping it afloat.” Still, more bad news comes from the newish restaurant Primehouse that he operates on Park Avenue South. Despite a $10-million-plus build-out and launch and a Himalayan rock-salt-tiled aging room for steaks, my source tells me, “It’s a bust.” She said, “There’s no more money coming down the pipe from the famous merger of Steve Hanson and Barry Sternlicht,” which seemed just a short while ago to be the greatest deal ever made. The real question here: If Steve Hanson isn’t making it, what does it mean for everyone else?