Baltimore’s fast-growing Atlas Restaurant Group usually makes headlines for opening (or taking over) concepts, not closing them. But now, the company is shutting down one of its longest-running spots and turning it into something else.

Ouzo Bay in Harbor East will end operations next month after 14 years in business.

In a release, CEO Alex Smith attributed the decision to issues with the building, saying “the restaurant requires significant infrastructure upgrades, including major systems that are due for replacement.“ Moving forward, he and his team decided to ”evolve and create an entirely new concept rather than reopen as Ouzo Bay.“

After Ouzo Bay shuts down on Feb. 15, the space will undergo renovation and redesign and open next spring or summer as a new, as-yet-unnamed concept.

Whatever arrives will likely encounter a newly competitive marketplace in the area. Nearby Harbor Point is preparing to welcome a spate of fresh restaurants, including a new seafood-focused eatery from Marta chef and owner Matthew Oetting, an Italian concept from the founders of Verde, and chef David Zamudio’s recently-launched Spanish spot, Josefina. Ouzo Bay also sits on the same block as chef Cindy Wolf’s James Beard Award-winning restaurant, Charleston.

Ouzo Bay, a Greek and Mediterranean restaurant, opened in 2012 and actually predates the creation of the Atlas Restaurant Group, which was established two years later. The seafood-focused concept named for Greece’s signature licorice-flavored spirit was an homage to the Greek heritage of Smith’s grandfather, the late developer John Paterakis Sr., who built Harbor East.

The restaurant became the site of national controversy in 2020, when a Black mom and her son were barred from eating there. Managers informed the woman that her son did not meet the restaurant’s dress code, though a video posted to social media showed a white child in similar attire inside. In 2024, a federal judge dismissed a racial discrimination lawsuit brought by the mother, concluding there was no evidence Atlas “intentionally discriminated” against her and her son.

In addition to Ouzo Bay, Atlas operates Ouzo Beach, an all-outdoor bar and dining area across the street and overlooking the nearby marina. That concept will continue to operate seasonally from May through September.

Atlas has several projects currently in the works in Maryland and beyond, including a members-only club, Rosewater, set to open this summer in Fells Point, and three concepts in Annapolis. In addition, Atlas is preparing to launch a second branch of The Ruxton, its Harbor East steakhouse, at National Harbor later this year.

In its history, Atlas has closed down only one other Baltimore-area restaurant: Towson’s Perennial, which shut down in 2024.