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Why did Studio 54 close?

The famous disco-era New York City nightclub Studio 54 closed in 1980 because its owners, Ian Schrager and Steve Rubell, were charged with tax evasion in December 1978. They were later found guilty and sentenced to three and a half years in prison. The club’s final party under their ownership was held on February 2, 1980, two days before they were to begin their sentences. The event was called “The End of Modern-Day Gomorrah,” in an arch reference to Sodom and Gomorrah, two notoriously sinful cities mentioned in the Old Testament. Diana Ross sang for the departing owners. The club reopened in 1981 under new owners but closed as a disco for good in 1986.