The Highball Express shut down with little warning at the weekend, with operators reporting they'd received notice to vacate the Melbourne Building late last year.
Lala Hospitality Group temporarily shut the Cuban-inspired bar, saying it had received an order to leave on Christmas Eve.
The group, which started Molly in 2013 and followed with The Highball Express, Amici Wine Bar and Deli, Bleachers Sports Bar and 88mph, said an all new Highball was on the way.
The shock departure from the Melbourne Building will come as a surprise to patrons, with the Alinga Street bar considered one of Canberra's most popular nightspots.
Last drinks were poured at the venue, which Lala Group rents from a private owner, on the first weekend density requirements were scrapped and dancing was permitted in the ACT.
A lease was hastily signed for a new venue following the eviction notice, and the fit-out is underway at the secret location.
Co-owner Jess Arena said Highball will be back at a bigger and better location, hopefully in May.
"We're gonna elevate things. The current Highball Express is more of a vintage Cuban vibe, the new one is going to be a little bit more luxe," she said.
Ms Arena said with she was unable to comment on details of the move from the Melbourne Building, as a legal dispute was currently underway.
"What we can say is that there's been ongoing negotiations [and] we couldn't come to an agreement [about issues] that are all COVID-related," she said.
"So we are moving."
During lockdown, the ACT government introduced measures requiring commercial landlords to engage in good-faith negotiations with business tenants affected by COVID-19 regulations.
The declaration prevented commercial landlords from taking actions against tenants impacted by COVID-19, such as terminating their lease, without first discussing lease arrangements.
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Ms Arena said Tuesday Latin dance classes would resume and customers could expect a similar cocktail and food menu.
She said the main change with the new site was a bigger space meaning LaLa Group had more options to entertain that they did in the old venue.
"People love Highball at the moment, but if you're going to move spaces, you've got to do something better than what you did before," she said.
'We've been in the industry for a long time now, so we do things better, we do things differently."
While the four families behind Lala Group currently have quite a bit on their plate, Ms Arena said plans for another small venue in Canberra were currently in the works.
"We're going to get through moving Highball first and then see where we're at," she said.
"You can only really open one at a time."
