Cocktail is expected to re-open after its liquor license was temporarily revoked due to a tax problem, according to general manager and part-owner, Dustin Hoffman.
Rumors had swirled in recent days that the popular Boystown bar had been shut down permanently. Hoffman said the rumors are untrue.
"It was just a clerical error on our part," said Hoffman. "It was overlooked."
Hoffman said that Cocktail owed money in back sales taxes from an audit that wrapped up last October, and that they missed their Sept. 13 deadline to pay.
According to Hoffman, a liquor commissioner was already at Cocktail on Tuesday, Sept. 13 investigating an anonymous complaint that the bar was not purchasing its alcohol legally. Hoffman said that during that time, the commissioner received another anonymous tip that the bar's liquor license had been revoked.
The phone call coincided with Cocktail's Tuesday liquor delivery, which was halted, said Hoffman.
The temporary shut down comes after months of turmoil at Cocktail. Hoffman and co-owner John "Geno" Zaharakis slapped their landlord, management company and two former employees with a $10 million lawsuit over an alleged conspiracy to destroy the bar.
Among other complaints, the suit alleges that Robert Brumbaugh, who purchased the property that houses Cocktail in June, made "false reports to the City of Chicago about untrue or grossly inflated building code violations, all in an attempt to disrupt Cocktail's business."
Hoffman and Cocktail's attorney, Jacob Meister, suggested a possible connection between both complaints to the Illinois Liquor Commission and what Meister called "a pattern of harassment."
Hoffman noted that the liquor delivery truck pulled up in view of a new camera installed by Brumbaugh and said that moments later, the liquor commissioner received the tip about the license.
Brumbaugh declined to comment on the allegations of continued harassment.
Sue Hofer, a spokesperson for the Illinois Department of Revenue, confirmed that the bar's license had been temporarily revoked and would be reinstated with payment. However, she said that the revocation occurred on Aug. 31, an action that would only come after months of failure to pay on time.
"This should not have come as a surprise," she said. "It could go on for months before we actually take the action of revoking."
According to Hofer, the liquor commissioner had been sent to Cocktail on Sept. 13 for the purpose of confiscating the license, after Zaharakis failed to show at his Aug. 31 revocation hearing before the Illinois Liquor Control Commission. Hofer said such action would have been taken regardless of an anonymous tip.
The license has been revoked ever since, she said.
"He dropped the ball," Meister said. "He literally had a gazillion other things going on."
Meister said the problem was embarrassing but not uncommon.
Hoffman said the bar was expected to open by Friday, Sept. 16. "Those are the rules and we have no problem following the rules," he said.
Hofer confirmed on Sept. 16 that a partial payment had been made by the bar and that the revocation would be stayed until Oct. 16. Cocktail was consequently expected to re-open.
Meister declined to comment on the amount of money owed, and such information is not made public by the Department of Revenue.
Meister also said that Cocktail is not in financial trouble. "It's doing well currently," he said. "Earlier this year, it definitely had difficulties."
A spokesperson for the City of Chicago confirmed that Cocktail's city liquor license remains active and was renewed on Aug. 25.
Meister also said that to his knowledge, the bar is up-to-date on all other payments.
"They're up to date on rent," he said. "This would be the only big thing."
