It is unclear when American Avents (the original American Scene, then American Events) and The Committee officially terminated the Entertainment Franchise Agreement under which they operated, although it is estimated to be the end of 1979. The reasons for the retreat of American Avents have variously been explained as:
- American Avents was going into debt, and decided to drop several of its clubs, including Minneapolis, at the end of the year; (30th)
- Disco was dying, Uncle Sam’s was getting sleazy, and it had a reputation of attracting minors; Allan asked American Avents to leave; (CRM)
- American Avents wanted to focus on more upscale venues, and lost interest in its more blue-collar clubs (SM).
The exit of American Avents meant that management of the club reverted back to the Committee, whose sole shareholder was Allan. Steve McClellan and Jack Meyers formed a corporation and signed a contract with (Allan/the Committee – at this point they were the same) to manage the club. (More details about 2M Inc. are in Section IV.) Steve was the General Manager with all the responsibilities and freedom to make decisions.