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

Harry Styles Restocks, Expands 'Pleasing Yourself' Collection

Harry Styles’ pleasure brand Pleasing has restocked its Pleasing Yourself line of double-sided dildos and lube, and added branded apparel.

Another German Court Rejects Blocking Orders Against Pornhub, YouPorn

A German court has blocked the Rhineland-Palatinate Media Authority (MA RLP) from forcing telecom providers based within the court’s jurisdiction to cut off access to Aylo-owned adult sites Pornhub and YouPorn.

Kiiroo Introduces New Luxy Dutch Stroker

Kiiroo has debuted the new Luxy Dutch stroker sleeve from its FeelStar line.

Ofcom Fines Kick Online Entertainment $1 Million for AV Noncompliance

U.K. media regulator Ofcom on Thursday fined Kick Online Entertainment 800,000 pounds (more than $1 million) for failing to implement age checks as required for compliance with the Online Safety Act.

FSC Details Legislative Outlook for 2026

The Free Speech Coalition (FSC) has laid out the legislative outlook for the industry in 2026.

Starship Unveils New Executive Team

Starship Enterprises has announced its updated executive leadership team.

Judge Dismisses NCOSE-Backed Suits Against Adult Sites Over Kansas AV Law

A federal judge on Tuesday dismissed lawsuits brought against two adult websites in Kansas for alleged violations of the state’s age verification law.

Aylo/SWOP Panel Spotlights Creators' Struggle for Digital, Financial Rights

Aylo and Sex Workers Outreach Project (SWOP) Behind Bars presented, on Tuesday, an online panel on creators’ rights, debanking and deplatforming.

CC Wellness Opens New Santa Clarita Facility

JO parent company CC Wellness has opened its new operations and warehouse facility in Santa Clarita.

Svakom Launches New Brand 'Kaotik Labs'

Svakom has launched its new male-focused sextech sister brand, Kaotik Labs.

Show More