The Haçienda lost its entertainments licence in June 1997. The last night of the club was 28 June 1997, a club night called 'Freak' featuring DJs Elliot Eastwick and Dave Haslam (the final live performance was by Spiritualized on 15 June 1997). The club remained open for a short period as an art gallery before finally going bankrupt and closing for good. After the Haçienda officially closed, it was used as a venue for two free parties organised by the Manchester free party scene. One of the parties ended in a police siege of the building while the party continued inside. These parties resulted in considerable damage and painted graffiti to the Ben Kelly designed interior.
Following a number of years standing empty, The Whitworth Street West site was purchased from the receivers by Crosby Homes. They chose to demolish the nightclub, and reuse the site for the construction of domestic flats. The iconic name was kept for the new development, with the Haçienda name licensed from Peter Hook, who owns the name and trademark. The nightclub was demolished in 2002 - Crosby Homes had acquired the property some time before that and, on Saturday 25 November 2000, held a charity auction of the various fixtures and fittings from the nightclub. Clubgoers and enthusiasts from across the country attended to snap up memorabilia ranging from the DJ booth box and radiators to emergency exit lights. The DJ booth was bought by Bobby Langley, ex Haçienda DJ and Head of Merchandise for Sony Music London for an undisclosed fee.
Crosby Homes were widely criticised for using the Hacienda brand name - and featuring the strapline “Now the party’s over...you can come home” in the promotional material. Another controversial feature of the branding campaign was the appropriation of many of the themes which ran through the original building. One of these was the iconic yellow and black hazard stripe motif which was a powerful symbol in the club’s original design, featuring as it did on the club’s