Top Hat Bar Closing Doors in December, Relocating

The landlord decided not to renew their lease for the location they’ve been at since the 50’s

Edit: The New Life Church has made a statement that they did not purchase the property and had no role in the bar losing its location.

Located at 508 S. 1st Ave. in Sioux Falls, the bar has long been known as a neighborhood gathering place and one of downtown’s few true dive bars — a place where regulars, first-timers, service industry workers, and longtime locals all seem to find common ground.

According to owner Andrea Shaw, who leases the building and does not own the property itself, Top Hat Bar & Lounge has been informed that its lease will not be renewed, and the business will need to vacate the space by December 2026.

The news comes as a shock not only to Shaw and her staff, but to many in the Sioux Falls community who see the Top Hat as more than just another bar. To them, it is a downtown institution.

For a small business owner, news like this is more than disappointing — it is destabilizing.

The Top Hat’s roots in Sioux Falls appear to run deep. A local Facebook post referencing a 1960 Sioux Falls phone directory says the bar opened in 1954, and notes how neighborhood businesses, including bars, pool halls, and beauty shops, shaped the character of the city at the time. Whether people remember it from decades ago or only discovered it in recent years, the Top Hat has become one of those rare places that connects old Sioux Falls to new Sioux Falls.

It has also continued to build a strong reputation since Shaw took ownership of it in 2006. The bar has received repeated recognition in recent years, including BusinessRate Top 10 in the bar category for 2025 and BusinessRate Endurance Top 10 in the bar category for 2026, according to materials shared by the business.

Awards alone do not define a place like the Top Hat, though. What matters more is what will be lost if it disappears from this location.

Downtown Sioux Falls has changed dramatically over the years. Development has brought growth, new investment, and new energy. But part of what gives a downtown its soul is the survival of the places that were there before the trend lines, before the polished branding, before every district started to look like every other district.

Now, the church next door, according to Shaw, would like to demo this building to replace it with a larger parking lot for its attendees. However, The New Life Church has made a statement that they did not purchase the property and had no role in the bar losing its location.

With this bar being forced out, Sioux Falls will not just lose a tenant. It risks losing a piece of its character — a local gathering place with history, personality, and a loyal following that cannot simply be recreated somewhere else.

At a time when communities everywhere say they want to support small businesses and preserve local culture, this is one of those moments when those values are tested in real life.

For Shaw, her staff, and the customers who have kept the Top Hat going, the hope now is simple: that the decision can still be reconsidered, and that the bar can remain where it has built its name and community.

However, this seems unlikely at this point, as Shaw has publicly announced its plans to relocate after it closes its doors in December. As of now, the new location is undetermined.