Penthouse Club Sues Detroit for Adult Entertainment Permit

DETROIT — Attorneys representing the Penthouse Club in Detroit have sued the city for refusing to issue an adult entertainment permit.

According to the suit, the club is accusing the city of refusing to take action on a request for permission to offer adult entertainment. The Detroit City Code defines and regulates adult entertainment, requiring licenses and imposing regulations for conduct by entertainers and other venue employees.

"We're attacking the city of Detroit's ordinances," attorney Michael Donaldson, who represents the club's owners, told XBIZ. "We're arguing that this is prior restraint."

The owners of the club, ABCDE Operating LLC, is using the Penthouse Club name under license.

The problem dates back to 2007, when the Penthouse Club wanted the venue's Class C License — with Sunday Sales, Entertainment and Topless Activity — transferred. Penthouse was required to schedule and pay for inspections by various city departments, which had not issued inspection reports when Penthouse Club applied for a Class D license in January 2008.

The city responded with a temporary moratorium on considering activity permits, which has been renewed regularly through the suit's filing on Nov. 24, most recently on Dec. 1. Although the club has been operating as a topless bar under a Temporary Occupancy Permit since Feb. 6, the suit says that the city is using a portion of the zoning code that the city knows is unconstitutional "to justify its inaction."

The suit asks for the federal court to declare the ordinances unconstitutional and enjoin the city and its representatives from using them in the future. The suit also asks for costs and attorneys fees.

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Orion Debuts 4 New Styles From Cottelli Lingerie

Orion Wholesale has introduced four new styles from its Cottelli Lingerie line.

New Federal Report Slams Debanking but Ignores Adult Industry

The Office of the Comptroller of the Currency (OCC) on Wednesday released a report on debanking activities at nine large national banks, but omitted any mention of the adult industry, despite previously identifying it as a sector facing banking discrimination.

EU Court Rejects Stripchat Challenge of Past VLOP Designation

The EU’s General Court on Wednesday ruled against Stripchat in a lawsuit seeking to annul a 2023 European Commission decision designating the site as a “very large online platform” (VLOP) under the Digital Services Act (DSA).

JO Launches Retail Education Program

Pleasure brand JO has rolled out a new in-store education program for retailers.

Blush Debuts Fine Jewelry-Inspired 'Queen's Reign' Collection

Blush has introduced its new Queen's Reign line of five pleasure products, inspired by fine-jewelry designs.

Aylo Case Against Utah VPN Rule on Hold Pending Legislative Changes

A federal court has paused Aylo’s suit over a Utah law making adult websites liable if minors bypass age verification by circumventing geolocation efforts, until the state legislature can meets to potentially amend the statute.

XR Brands Debuts 3 New Fantasy-Themed Collections

XR Brands has introduced three new fantasy-themed lines inspired by hentai, kawaii, and K-Pop.

Orion Debuts New Cock Ring From 'Rebel' Line

Orion Wholesale has released a cock ring with a vibrating stimulator from its Rebel collection of men's pleasure products.

Melanie Rose to Exhibit $2M 'Pearl Royale' Vibrator at Sex Expo

Melanie Rose, host of the Netflix series “How to Build a Sex Room,” will showcase the $2 million Pearl Royale vibrator at Sex Expo, taking place Jan. 8-9 at JW Marriott L.A. LIVE.

German High Court Puts Pornhub, YouPorn 'Network Ban' on Hold

A German high court on Friday temporarily barred a state media regulator from ordering internet providers to cut off access to Aylo-owned adult sites Pornhub and YouPorn in Germany, pending further action by Cypriot and European Union authorities.

Show More