The site in Princes St will be transformed into a southern American-style restaurant and venue in time for the Ed Sheeran concerts next month.
Mr Lindsay said the nightclub had been profitable for most of the eight years he had owned it but in the past year it had become harder to turn a profit.
''It's just the way the hospitality scene in Dunedin is going these days.
''It's more about serving food and having people come in for a drink while they eat.''