Chicas Locas chooses to close for good; City of El Paso continues legal battle

EL PASO, Texas (KFOX14/CBS4) — Chicas Locas, formally known as “Jaguars,” in East El Paso has permanently closed its doors, but legal challenges with the city persist.

The establishment, operated by JAI Dining Services Inc., shut down a few weeks ago after reopening in March 2025.

According to the operator’s attorney, Casey Wallace, the business chose to willingly close for good, and is now even selling the building.

Despite the closure, the city of El Paso filed a temporary injunction against the business last week, alleging it was operating as a sexually oriented business without a permit since its reopening.

Melissa Herrera reports on Chicas Locas closing amid legal battle (Credit: KFOX14)

Wallace questioned the city’s actions.

“We don’t want to do business in the city of El Paso,” Wallace said. “The business is closed. What are they trying to temporarily enjoin and why on earth would the city spend thousands upon thousands of dollars trying to enjoin a business that’s not even in operation anymore?”

Prior to the city’s move, JAI Dining Services Inc., or Chicas Locas, filed a motion for the court to dismiss its legal battle with the City of El Paso on October 28, citing it had resolved the issues the city listed while it was open.

The temporary injunction filed by the city claims that Chicas Locas was pretending to be a bikini bar while actually operating as a sexually oriented business, with allegations of topless or nude dancers interacting with customers.

The city is asking the court to grant a temporary injunction, or prevent the business and its employees from operating a business at 11377 Gateway Blvd W, El Paso, Texas without a sexually oriented business license, and other conditions.

However, Wallace refuted these city’s claims that were listed on the document, stating, “The officers all testified and have previously testified that the dancers are not topless. The entertainers are entertainers but they’re not topless entertainers. The areas that need to be covered are covered.”

Wallace said Chicas Locas had intention to transition into a sexually oriented business, and applied for a license in August, but the city denied the application and scheduled a hearing.

According to the temporary injunction filed by the city, the business withdrew its application before the hearing.

Wallace said, “We wanted to get the permit because the city wanted us to get the permit. We applied for but were denied an SOB license by the City of El Paso.”

KFOX14/CBS4 reached out to the City of El Paso to learn why it chose to filed the temporary injunction after the business had closed for good, why the city denied Chicas Locas attempt to obtain an SOB license, and if there was anything the city wanted to comment at the establishment’s motion to dismiss the lawsuit.

A spokesperson for the city, Karla Nieman said in a statement, “Last year, the City filed its lawsuit against Jaguars, seeking civil fines and a temporary restraining order (TRO) to stop violations of the City’s Sexually Oriented Business ordinance; a law that Jaguars unsuccessfully challenged several years ago. At the same time, El Paso County brought a nuisance abatement suit against Jaguars, and the court in the case issued a series of orders that closed Jaguars for several months, eliminating the need for a hearing on the City’s TRO request.”

She continued, “The same company that ran Jaguars “rebranded” as Chicas Locas, reopened briefly in September 2024, and was again closed by a court order in the County’s case. The County and Chicas Locas later reached a settlement with permitted it to reopen earlier this year. That lawsuit has ended. The City has not settled with Chicas Locas. Based on evidence that Chicas Locas has repeatedly violated the City’s Sexually Oriented Business Ordinance, the City is seeking an injunction to stop the violations of its court-approved law. In fact, Chicas Locas applied for a Sexually Oriented Business license, which the City denied. Chicas Locas has also failed to adequately respond to the City’s discovery requests in the case. Thus, the City is seeking to obtain Chicas Locas’s compliance with both mandatory discovery obligations and the City’s Sexually Oriented Business ordinance.”

In response to a follow up question about the business being closed and whether or not the city will still be pursing the temporary injunction, the city said while the are aware that the business is closed, it does not “resolve the issue of past violations or excuse the business from complying with court procedures.”

“As noted below, Chicas Locas has also failed to adequately respond to the City’s discovery requests in the case. Thus, the City is seeking to obtain Chicas Locas’s compliance with both mandatory discovery obligations and the City’s Sexually Oriented Business ordinance.”

A hearing for the injunction is scheduled for Dec. 2.

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