Two longtime downtown State College establishments that have been traditions for generations of local residents and Penn State community members are closing their doors.
The All-American Rathskeller and Spats Café and Speakeasy will both close, owners Duke and Monica Gastiger announced in a news release on Monday, stating that the new owners of the property at the corner of South Pugh Street and East College Avenue informed them their lease would not be renewed.
The spaces were leased to another tenant, which has not been named.
“It has been a great honor operating these two iconic establishments and serving this community and its many truly wonderful patrons and friends,” Duke Gastiger said. “We are grateful for the loyalty that people — including our incredible employees — have shown us over the years. We most regret closing with such short notice, but it was unavoidable given the timeline dictated by the new property owners.”
The property was purchased in June 2017 by Neil and Chuck Herlocher under the name Cornelius LLC. Neil Herlocher said at the time that ‘Business there will continue as usual. There are no plans to make drastic changes to the properties, although we will do some renovations and improvements.’
In a statement on Monday night, the Herlochers said they tried to work through lease issues with the Skeller, which had not had a lease since 2011 and was pay ‘well below market rate.’ They also offered to buy the business and were turned down.
‘We understand the concern many Penn Staters and State College natives have expressed,’ the Herlochers said. ‘We want to assure you that as State College residents and Penn Staters we fully understand the historic importance of that location and memories made there across decades. We are committed to maintaining the character of the location that was founded in 1933 by Pop Flood as the Rathskeller and Gardens until 1934 when Doggie Alexander named it The All-American Rathskeller.’
They added that the new proprietors at the location will continue the tradition established by the Skeller.
‘The new tenants will be the latest in a long line of owners who have maintained the proud tradition of good times and good friends meeting in this downtown State College landmark,’ the statementsaid.
The Skeller has been in business for 85 years, opening on Nov. 9, 1933, days after prohibition ended. The Gastigers are the fourth owners of the popular basement bar, having purchased it in 1985.
Spats, which offers Cajun and Creole food, has been open since 1987.
Closing dates have not been determined.
The Gastigers plan to open a new restaurant in 2018, the farm-to-fork RE Farm Cafe. They purchased Windswept Farm in Patton Township in 2016 to be the location for RE Farm.
“We have been blessed with a wonderful community of employees, patrons and friends, and we have not reached our final act,” Duke Gastiger said. “With RE Farm Café at Windswept we have plans to take our innovative cooking and hospitality in a new direction with an exciting new restaurant concept for the area. We are focused on community and sustainability, and we have big plans for our next venture.”
The new establishment will bring on some of the employees from Spats and the Rathskeller, but can’t accommodate all of them. About 60 people are expected to lose their jobs at the two businesses.
The Herlochers said the new operators for the location are interested in retaining Skeller staff.
