The future of The Jam House is under review following a year of unsatisfactory trading by the UK's biggest nightclub operator, which owns the Birmingham venue.
Luminar, which also owns the Liberty's nightclub chain, said it would look at all of its options, including the possible sale of the 90-strong Entertainment division.
As well as The Jam House, in St Paul's Square, the division features Chicago Rock Cafes and a number of Jumpin' Jaks bars, including outlets in Redditch, Stourbridge, Tamworth, Walsall, Stratford and Worcester.
The group had originally said in January that it had no interest in selling The Jam House. However, a spokesman for the company said yesterday: "Things changes and the non- core bar sector has underperformed this year.
"The Jam House falls into this category and will be under review with the rest of this division."
The company reiterated its January statement that it wants to retain the Liberty's chain.