SchwuZ, Icon of Queer Culture, Files for Bankruptcy Amid Declining Revenue
SchwuZ, one of Berlin's most iconic queer clubs, has filed for bankruptcy proceedings in court. SchwuZ, which opened in 1977, is recognized as Germany's first club dedicated to the LGBTQ+ community and has long been regarded as a symbol of Berlin's queer culture.
Yonhap News reported this on August 1 (local time), citing coverage from Germany's public broadcaster rbb and others.
The SchwuZ management announced in a notice sent to its members that "due to insolvency, we have entered bankruptcy proceedings," adding, "The club will continue to operate and employees will continue to be paid." They further emphasized, "This bankruptcy filing is not the end, but a step toward a new beginning."
Katja Jaeger, who became CEO in March 2024, stated, "Due to a severe decline in sales, we are accumulating a monthly deficit of 30,000 to 60,000 euros (approximately 48 million to 96 million KRW)." As a result, SchwuZ has laid off about 30 employees, including staff who had worked there for over 20 years.
SchwuZ has functioned not just as a club, but as a community space where queer identities are shared and supported. Some even say that the Berlin LGBTQ+ festival, Christopher Street Day (CSD), could not have existed without this club.
Klaus Lederer, queer policy spokesperson for Berlin's Left Party, said, "Even though queer culture is facing a severe crisis, the Berlin state government remains indifferent," pointing out the responsibility of the centrist-conservative Christian Democratic Union (CDU) and the center-left Social Democratic Party (SPD).
The crisis at SchwuZ dates back to the COVID-19 pandemic. At that time, Berlin's nightclubs, due to their crowded and enclosed spaces, were unable to operate normally because of government quarantine regulations and restrictions.
As a result, like other famous clubs such as Tresor and Berghain, SchwuZ also entered a prolonged closure, and financial pressures mounted. During this period, SchwuZ raised 75,000 euros (about 120 million KRW) through fan donations and received a loan of 300,000 euros (about 410 million KRW) from the German Development Bank, but these measures were only temporary solutions.
Berlin's clubs define their identity not simply as entertainment venues but as a kind of "cultural space," valuing atmosphere and community over profit. However, because of these characteristics, their revenue structures were already vulnerable even before the pandemic. The average entrance fee was just 10 euros (about 14,000 KRW), and more than half of the clubs were either operating at a loss or barely managing to stay open.
A representative of the Berlin Tourism Board expressed concern, saying, "The essence of Berlin's nightlife was 'complete freedom,' and the current situation is seriously threatening this culture."
The German government is expanding its cultural space protection policies through 2029, but there are still widespread complaints on the ground about the lack of practical support. Experts warn, "If club culture disappears, the identity of the city of Berlin itself could also be at risk."
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