The Mercury Cafe Will Become the Pearl

Last August, Danny Newman said that he was putting the Mercury Cafe on the market, or at least looking for a new tenant or investors. Now, seven months later, a lease for the legendary eatery and venue at 2199 California Street has been signed — by Dom Garcia and Ashlee Cassity, owners of the lesbian speakeasy Pearl Divers, currently located within Your Mom's House at 608 East 13th Avenue.

"We will be closing down Pearl Divers and moving into the Pearl by the end of [March]," the Pearl's Instagram account posted this morning. "Our goal is not to revive the location, but to make it thrive in a way that is responsible and ethically aligned with our values." In a letter on the post, the owners affirm their commitment to "revitalizing" the legacy of the Merc founded by Marilyn Megenity more than fifty years ago. "We want to give fresh life to this space, honoring its rich history as a treasured gathering spot for Denver's LGBTQIA+ community and beyond."

Unfortunately, the letter notes, they will not be keeping the name, "due to the current owners shutting down the Mercury Cafe not only in business but in name."

According to Newman, the Mercury will remain open until the Pearl moves in.

Jonathan Mora, who owns and operates Tua Mama's/Mora's Pizza at 614 East 13th Avenue, is both a partner in Pearl's and will be running a vegan-friendly kitchen at the new space, as well as keeping his spot on 13th. He took over the former Benny Blanco's space adjacent to Your Mom's House nightclub for his pizza joint in December, shortly before Pearl Divers opened within the club.

In addition to Pearl Divers and Mora, the Sapphic Collective will also be a partner in the Pearl, "in charge of events and the social media presence," according to the Instagram post. "We will be keeping many of the events that people knew and loved in the Mercury Cafe on the schedule in the Pearl!"
Newman, now the Pearl's landlord, says the new owners have an option to buy the building.  "It all has actually been a complete whirlwind," he notes. "It was probably just three weeks ago when this all kind of started. So yeah, it's been very quick, and I'm very impressed with what Dom and Ashlee have created over there, and I'm so excited that they're going to be able to expand."

Newman was one of three owners who bought the Mercury in June 2021 from Megenity, who opened the forerunner of the Merc in Indian Hills in 1975, then moved it through a variety of locations before buying the building on California Street in 1990. Although Megenity, who wanted to retire, chose the new owners and the time of the sale because the stars seemed aligned, the last few years have been rocky.

"We initially bought this place to make sure that it survived," Newman says. "Obviously, things were really rough during COVID, and we knew it was going to be tough. We were just stewards, you know, kind of momentarily, to make sure that we kept it going. And so I feel really good about that."

Megenity, too, says she's "hopeful" that this next chapter will indeed revitalize the Merc's legacy,

Even with a different name.