Following a well-publicised run-in with a 72-hour closure order last month, the owners of the Imperial Hotel in Erskineville, Sydney are now fighting to keep the iconic venue open in the face of another forced closure from liquor authorities.

Shadd Danesi confirmed to the Sydney Morning Herald that the venue would remain closed this week as he begun negotiating its future with officials, including the Office of Liquor, Gaming and Racing and NSW Police.

As Tone Deaf reported last month, NSW police slammed the owners of the venue with a rare 72-hour closure order after a targeted police operation allegedly found staff consuming illicit drugs whilst on the job, among other illegal activity.

On Friday, a second closure order was issued to the much-loved venue after inspectors reported further instances of open drug use and extreme intoxication. Deputy Premier and Police Minister Troy Grant said inspectors saw a man openly selling a spoonful of white powder to a woman.

As ABC News reports, inspectors allegedly saw a man standing next to the dance floor while he dipped a small spoon from his necklace in a container of white powder and held it to a woman’s face to snort in exchange for cash.

Inspectors also reportedly saw a male patron licking spilt alcohol off the floor, leading authorities to close down the the pub for the second time in just over a month, this time drawing the attention of Minister Grant.

“Operating a licensed venue in NSW is a privilege, not a right, and those abusing it will face the consequences,” he said. The hotel and authorities are now debating exactly what form those consequences will take for the venue.

Meanwhile, Spice Group International, the venue’s tenant and the operators of the Spice Cellar nightclub held in the hotel’s basement, will leave. The group announced the end of the Spice Cellar on Friday, placing the blame on the NSW government’s lockout laws.

“Minister Grant said inspectors saw a man openly selling a spoonful of white powder to a woman.”

Mr Danesi said that while no decision had been made to permanently close the Imperial Hotel, authorities are looking to impose a long-term closure of more than a month. “It might be closed for a period of time. I have to have some discussions with the authorities in that regard,” he said.

Mr Danesi said he was hoping to reach an agreement with officials for the venue to continue trading, saying there was a need for a “reasonable discussion” about tackling illicit drug use on the premises.

“I would never tolerate the supply or sale of drugs in any venue which I operated,” he said. “I can understand the authorities are extremely concerned, as I am. We are both on the same page.”

As Tone Deaf previously reported, the concerns of police were first raised following several cases of drug detections linked to the venue, in addition to issues with intoxicated punters and ongoing disturbance issues from patrons leaving the venue.

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According to Fairfax, police raided the venue last month and subsequently charged two staff members with drug offences after officers witnessed them consuming ecstasy inside of the venue and continuing to serve alcohol to patrons.

“Bar staff were observed openly consuming illicit drugs while performing their duties,” said the OLGR in a statement. Several venue patrons were also seen in possession and under the influence of illegal drugs, including supplying and consuming drugs in the toilets.

In addition to numerous drug problems, including inspectors who claimed to have been offered illicit drugs, police cited issues such as excessive noise, vandalism, public urination and defecation, cases of punters falling asleep inside the venue, and a woman who was found unconscious in a toilet cubicle.

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