TORONTO (CBC) - Glitzy nightclubs in Toronto's entertainment district say they have fallen upon hard times this year as low-key party-goers head west to smaller venues.
Circa, Toronto's largest nightclub, has confirmed to CBC News that it is filing for bankruptcy protection. Ari Kulidjian, one of Circa's owners, said the John Street club has had problems with debt since it opened two years ago.
Other spots in the entertainment district bounded by Queen Street West to the north, University Avenue to the east, King Street West to the south and Spadina Avenue to the west also appear to be struggling to attract business.
"From 2008 summertime all the way up to today, the traffic in clubland has been down approximately 20 per cent per year," said Jan Wrobel, the owner of Cabana, a club on the corner of Richmond Street West and Peter Street. "So we're down 40 per cent over the past two years."
Janice Solomon, the executive director of the entertainment district's business improvement area, said people are still partying, albeit elsewhere.
"Possibly some of our larger venues aren't as attractive people are starting to shift back into that small, more intimate lounge environment ,as you can see with some of our neighbourhoods directly to our west," she said.
A clutch of smaller bars, lounges and clubs have popped up around the Ossington and Queen West area in the last couple of years. Owners of those businesses don't appear to be having the same problems as their counterparts in the entertainment district.
"Generally on Fridays and Saturdays, we'll see a lineup form at 11o'clock. And it will stay that way for three hours," said Adam Baguely, who owns Lavak Block on Ossington, near Queen West.
Baguely said smaller bars in the neighbourhood are likely cheaper than larger clubs his bar, for example, doesn't charge an entrance fee or for checking coats.
He also agreed with Solomon's theory that party-goers are looking for a more intimate experience his bar has a maximum capacity of 200 people. Circa, by comparison, can accommodate up to 2,800.