04/10/2013 10:21 EDT | Updated 06/10/2013 05:12 EDT

Iconic Halifax nightclub the Palace closes its doors

A popular nightclub that has been a fixture of Halifax’s downtown since 1979 has closed its doors.

The owners of the New Palace Cabaret confirmed Tuesday night that they’re no longer in business.

“We are always keen to recognize demographic changes and industry trends, and as a result have decided to renovate the current location into a new and unique concept,” said owners Michel and Marcel Khoury in a statement.

The brothers said they’re starting renovations immediately on their new business. They did not reveal what type of operation they would open.

“We are excited about this new venture and are optimistic about Downtown Halifax’s future.”

The closure shocked Sammi Khalief, who went to the Palace with his friends.

“I’ll be sad to see it go,” he said. “I think it might affect downtown business… because it’s a draw for people downtown.”

But not everyone was a fan.

“I don’t really go to the Palace so that could be why it’s closing. Nobody goes there,” said Christian Dehmel.

The Khourys also own the Alehouse next door. They employ about 100 part-time staff between the two businesses.