The Roanoke Times | File 2008

The Lantern, which is now closed, had a license to sell beer and wine, but not liquor. "We had not yet had a profitable month and our money was running out," Lantern co-owner Dan Chastain wrote in an e-mail. "Poor attendance and not having a mixed-drink permit were big factors."

BLACKSBURG -- The owners of the Lantern, a live music venue and bar on Draper Road in Blacksburg, have closed its doors for good, citing financial trouble and a pending $750,000 lawsuit.

The "open" sign hasn't been lit since May 14. Owners Dan Chastain and Brian Turner at that time said the closure was temporary and that the venue, for sale since March, would either reopen in early August or be sold. "We had not yet had a profitable month and our money was running out," Chastain wrote in an e-mail on Wednesday. "Poor attendance and not having a mixed-drink permit were big factors."

The Lantern had a license to sell beer and wine, but not liquor.

In his e-mail, Chastain said the venue had a potential buyer, but that person backed out when the lawsuit was filed April 9 against the business entity that owns the Lantern, 4th Street Ventures LLC.

A sale would include the Lantern's assets and name. The space is rented and isn't included.

"We found a buyer who wanted to buy the LLC and keep the business as it was," Chastain wrote. "Unfortunately soon after that we became aware that a suit was being filed against our LLC and the buyer was no longer interested in buying a business under suit."

According to the suit, filed in Montgomery County Circuit Court, Leah Justis Lagesse was attending a Sept. 28, 2008, concert at the Lantern when another patron ran into her, causing her to slip in the wet floor. When she put her hands forward to catch herself, her left hand hit the stage and crashed into numerous glass bottles lining it.

The suit claims that broken glass lacerated Lagesse's left hand and Lantern employees were "uninterested" in her injury. The suit asks for $750,000 in damages.

Lagesse's lawyer, Stephen Haga, said he "found it odd" that a business selling alcohol was allowed by the town and the Virginia Department Alcoholic Beverage Control to operate without liability insurance and as the limited liability company.

Such companies, Haga said, are set up in part to protect from personal liability, making it harder for a plaintiff to collect in the event of a judgment.

Haga declined to elaborate, saying only, "I will say this, she was badly injured."

Chastain declined to comment on the case and whether the Lantern carried liability insurance. The lawyer for 4th Street, John Robertson, could not be reached for comment.

Town Attorney Larry Spencer said Blacksburg has the ability to regulate business licenses but not what insurance they carry.

In the defense's response to the suit, Robertson denied that medical treatment was unavailable, stating "it is standard procedure in the event a request for first aid is made for the bartender to provide immediate access to an OSHA-certified first aid kit located behind the bar."

According to the response, Lagesse was celebrating her 21st birthday and "numerous witnesses" said she "was significantly intoxicated when she arrived at the concert, or that she became intoxicated at the concert" and "at least one concert attendee who was acquainted with the Plaintiff witnessed her actively participating in the dancing towards the stage area while intoxicated."

No hearing date has been set for the case.

The Lantern opened in July 2008 in a space that had been home to a Mexican restaurant and various other nightspots. Renovations were relatively easy; the stage was already in place, so the owners had the walls painted bright red and added some decorations.

The focus was on creating a music venue, with food and drinks coming second, Turner said at the time.

"We're not trying to get rich," Chastain said then. "We just really love music and we want to show that."

The loss of the Lantern is a blow to the Blacksburg music scene, said musician Deral Fenderson, who performed at the Lantern five or six times.

The town had a fairly strong music scene in the early 1990s, but that changed over time, said Fenderson, who has lived in Blacksburg since 1994.

"Somewhere, this became a football town, and it changed the kind of people coming to [Virginia] Tech," he said. "That's not bad necessarily, but it's changed."

To be successful, a music venue needs a faithful crowd to keep it open five or six nights a week, Fenderson said. "It wasn't those guys, it's just the area," he said.

Roanoke-based music promoter Brian Zickafoose disagrees.

The Lantern pulled in a good crowd for some shows, he said, but the lack of a mixed-drink license and inconsistent food sales ultimately caused its demise.

Zickafoose ended his promoting relationship with the Lantern earlier this year, but said he would liked to have seen it succeed.

"When those guys came into the game, they had big heart and big intentions but they, too, didn't really know what to expect," Zickafoose said.

Other downtown nightspots offer regular performances, including Awful Arthur's, Champs, Gillie's and the Cellar. Also, Ceritano's restaurant is planning to add a stage and bar to its building.

As an established restaurant, Ceritano's has a cushion that the Lantern didn't, Zickafoose said. Food sales can carry the business while its nightclub scene gets established, he said.

"Rest assured, I believe the music scene in Blacksburg is alive and well today, but I know the Lantern will be sorely missed," Zickafoose said.