Hollywood Hot Spot Shut Down

3/28/2006 8:15 PM PST

Hollywood Hot Spot Shut Down

TMZ has confirmed the most exclusive Hollywood hot spot -- Teddy's at the Roosevelt Hotel -- has been officially closed until further notice. The nightclub has played host, week in and week out, to Hollywood's A-list celebrities. Lindsay Lohan, Cameron Diaz, Paris Hilton, Heath Ledger and Prince are just a few who frequent the very, very VIP booths.

The problems may stem from issues with the club's manager Amanda Demme, the widow of Ted Demme. Tuesday's Page Six reported the owners of the hotel are not happy with Demme. A host of alleged troubles has plagued the hotel since Demme took control including underage drinking, noise violations, mistreatment of paying hotel guests and racial discrimination. Read more

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Jennifer Gross, Demme's rep, confirmed that the Roosevelt chose to exercise their right to buy out Demme and run the venues on their own. As to the reasons for Demme's departure, she called Page Six's report "innuendo and hearsay."

Never fear Hollywood's elite -- Demme's rep says she's sure Teddy's will reopen soon under the Roosevelt's management.