Downtown Boise nightclub owner Ted Challenger will soon acquire another bar.
8th St. Karma, formerly known as Fatty’s Bar, is joining Challenger Hospitality Group. This will be the fourth nightclub Challenger owns alongside Amsterdam Lounge, Strange Love, and Dirty Little Roddy’s.
“It is an excellent location, it’s an amazing space and it fits right in with what my team and I do,” Challenger said. “We do really well running big clubs. You will notice I don’t own small little intimate bars.”
Challenger admitted acquiring a fourth nightclub during a pandemic is a risk. He says his other three bars took a huge hit because of COVID-19.
“I mean, they got slaughtered just last year because, you know, restaurants can do takeout food and adjust a little bit, but a dance club has nothing to offer during the pandemic. I lost $3 million.”
Pandemic fueled sale
Challenger added that he didn’t have much cash to put down on Karma but was able to work out a deal with the club’s previous owners based on debt Karma incurred during the pandemic and his experience running large clubs.
“I was like ‘look, you know who’s gonna loan money to buy a nightclub right now and what’s your value after it’s been through this horrific event. I’m a good fit for you,'” Challenger said. “It is an awesome responsibility to have that many people drinking alcohol in one place, and I specialize in it and then I pass it on to my team of managers.”
The deal will be finalized in several months after a lease agreement is signed and liquor licenses are transferred over. Challenger will own 70% of Karma with three of his managers owning the remaining 30%.