According to legal papers affixed to the exterior of the building, the landlord, 260 Flatbush Avenue Realty, has gone to court to evict the Kemistry Entertainment Group for nonpayment of rent (of the to-be-renovated space), requesting $66,078.81, with interest from June 1, 2012.
I queried Kemistry last night but haven't heard back; I will update this when I learn more.
The planned lounge has been quite controversial because its principals planned bottle service, which has been associated with rowdy behavior and is usually not offered in residential districts. Kemistry's main entrance would be on busy Flatbush Avenue, albeit quite close to a day care center, and have a back exit on residential Prospect Place. It has not yet applied for a liquor license, after failing to gain support of Community Board 6.