San Francisco, California — A beloved Irish pub in the city’s Mission District has closed indefinitely after more than two decades of serving its neighborhood, with a $160,000 loan dispute threatening the business’s future and leaving employees waiting for their final paychecks.

The Liberties, located on Guerrero Street, announced a closure around the Labor Day holiday, but the shutdown could become permanent. According to Mission Local, owner Ian Duggan is dealing with a lawsuit involving a loan from Kalamata Capital Group LLC and is searching for someone who might take over the establishment.

For Duggan, the fight is about more than keeping a business open. The pub has become part of the neighborhood’s identity, and he says he still hopes to find a way forward.

The Liberties Closes After More Than 20 Years

The Liberties opened in 2002 at the corner of Guerrero and 22nd streets in San Francisco’s Mission District. Over the years, it developed into a neighborhood gathering place, attracting customers with trivia nights, bingo, live music and a welcoming Irish pub atmosphere.

Duggan took over the business in 2019, only months before the COVID-19 pandemic disrupted restaurants and bars across the country.

Despite the difficult circumstances, the pub managed to remain open during the crisis. It became known for offering $5 meals to help people access affordable food when many local residents were struggling.

Duggan estimated that the business served more than 9,000 discounted meals during that period.

The effort was supported by donations from Facebook founder Mark Zuckerberg and his wife, Priscilla Chan. The Liberties was among eight local businesses selected to receive $100,000 in donations, with the couple reportedly having a personal connection to the restaurant.

Those funds helped support the discounted meal program. However, Duggan also relied on his own savings and retirement funds to keep the business operating.

A $160,000 Loan Dispute Complicates the Future

The immediate challenge now involves a legal dispute over a $160,000 loan.

Duggan and The Liberties were sued by Kalamata Capital Group LLC last August, according to the report. The dispute has complicated the owner’s ability to operate the bar and access money needed to meet outstanding obligations.

“I’m having a legal issue with some creditors who just made it difficult for me to operate. I am doing what I can to try to find a way forward for the place,” Duggan told the outlet.

He also acknowledged that the borrowing decision had not produced the outcome he expected.

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“When I took the money, I had a plan, but it didn’t work.”

The dispute has created additional difficulties at a time when the business is already struggling to remain open. With the pub now shuttered indefinitely, its long-term future remains uncertain.

Employees Are Waiting for Their Final Paychecks

One of the most urgent issues facing Duggan is getting the funds needed to pay his employees.

He said payroll money had been frozen because of liens connected to the lender dispute. He is now working with lawyers to try to have the funds released so staff members can receive their final paychecks.

“That’s what I’m working on now. In six years, everyone always got paid, through COVID, through everything, until these funds were frozen,” Duggan said.

He continued:

“Their payroll funds were frozen by liens from the lender dispute. I’m paying lawyers with the last of my personal funds to get it released to them. I did my best, but it wasn’t enough to stop this.”

The situation adds another painful dimension to the closure. Beyond the loss of a familiar neighborhood business, employees are now waiting for the financial uncertainty surrounding their workplace to be resolved.

Owner Hopes Someone Will Save the Neighborhood Pub

Despite the challenges, Duggan has not completely given up on The Liberties.

He is looking for a new owner or operator who could take over the business and potentially give it another chance. Although he would prefer to remain involved, he says preserving the establishment matters more to him than retaining ownership.

“The place has been here for 25 years. It means a lot to me and to a lot of people,” he said.

“I’d love it to be me, but I care more about the place than I care about me.”

Duggan also reflected on the personal sacrifices he made to keep the pub running through difficult years.

“I poured six years of my life into this place. My heart, my sweat, my savings, my retirement, to keep it open as long as I possibly could.”

He added: “I’m frustrated and I’m heartbroken with what’s going on. I’m trying to find a way through, but it’s difficult.”

Will The Liberties Ever Reopen?

For now, there is no confirmed reopening date, and the possibility of a permanent closure remains.

The outcome may depend on the resolution of the loan dispute, access to frozen funds and whether a new operator can be found. Until then, a pub that survived the pandemic and continued serving its community faces one of the most uncertain periods in its history.

For longtime customers, the closure marks the possible end of a place where neighbors gathered for music, games, food and conversation. Whether The Liberties returns under Duggan or a new owner remains an open question.

Do you think longtime neighborhood pubs deserve another chance when financial disputes threaten their survival? Share your thoughts in the comments, and tell us what makes a local bar or restaurant worth saving.