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

Anastasia's Bedroom Introduces 'Lightly Loved Lingerie' Collection

Anastasia’s Bedroom, a Canadian-based online retailer, has debuted its Lightly Loved Lingerie collection.

AV Bulletin: Loopholes and Lawsuits

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

LELO Debuts 'Surfer 2' Anal Plug

LELO has introduced its new Surfer 2 anal plug.

Utah 'Porn Tax' Bill Will Head to Governor's Desk

A bill that would tax adult websites and make them liable if minors circumvent geolocation has passed the Utah state legislature and will soon head to the office of Gov. Spencer Cox for signature or veto.

Pornhub to Restrict Access in Australia as AV Rules Take Effect

Pornhub parent company Aylo will restrict access to its free video-sharing platforms in Australia in response to new age verification regulations, the company confirmed Thursday.

Our Erotic Journey Expands 'Cristal Collection' of Vibrators

Our Erotic Journey has introduced five new vibrators from its Cristal Collection.

Nice & Naughty Names Chris Fleiger Director of Operations

Michigan-based retail chain Nice & Naughty has appointed Chris Fleiger as its new director of operations.

House Committee Approves Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce on Thursday passed the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

XBIZ Retreat to Make Its Cabo Comeback Aug. 17-21

XBIZ Retreat will return to Cabo San Lucas Aug. 17–21, bringing together top LATAM retail buyers and pleasure product brands for a week of dealmaking and networking.

Orion Debuts 'Oral Fun' Vibrator Collection

Orion Wholesale has introduced its Oral Fun vibrator line.

Show More