Updated at 6:45 p.m.

Two weeks after the city threatened to revoke the licenses of two problematic clubs downtown, one is throwing in the towel.

Bootleggers, located on First Avenue and Fourth Street, has submitted a license withdrawl agreement that becomes effective October 1, said the city's business licensing manager Grant Wilson.

City staff recommended revoking the club's license at a recent press conference for admitting intoxicated patrons, serving liquor after 2:00 a.m., having an unregistered manager and not paying false alarm fees.

Wilson said owners are seeking to sell the business to someone else. If that happens, the owner would need to apply for a new license. They may choose to also use the name Bootleggers.

Had the owners not chosen to close, the Minneapolis City Council would have had the last say on whether to revoke the license. The club has operated downtown since 2006.

The other club that city officials targeted, Envy, has not yet made a decision. They have until August 27 to do so.

Deepak Nath, a partner in the company that owns Bootleggers, declined to comment on Tuesday. Owners of Envy did not return a message seeking comment. The city said in its findings that Susan Beamon, a minority owner of Envy, was also running the day-to-day operations at Bootleggers.

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