Patrick’s Day Flood of 1936 carried away the club’s piano and furniture.
Lyricist and music publisher Joe Hiller opened the Music Box in the basement of 818 Liberty Avenue in 1934, booking performers like Dora Maughan, Buddy Kountz, and Eddie Loughton until the St. Before the Pegasus came along, however, the basement played host to a number of other nightclubs. During this period a cafeteria operated out of the basement that would eventually become the Pegasus Lounge. Due to competition from the larger Penn Theater the Liberty Theater closed in the 1920s, became offices and stores, and was renamed the Baum Building. Opened in 1913 as the Liberty Theater John Harris, the building included a 1,400-seat vaudeville showcase. The building on the corner of Liberty Avenue and Strawberry Way that once housed the Pegasus Lounge has a long and storied past as an entertainment venue.